Keppel Group and PSA Corporation held the groundbreaking ceremony for The HarbourFront twin office towers today. The twin towers are part of Phase One of the Office Park Development on the southern coastline of Singapore.

The ceremony was officiated by Mr Sim Kee Boon, Executive Chairman of Keppel Corporation and Dr Yeo Ning Hong, Chairman of PSA Corporation.

The Office Park Development is the first project to be launched as part of the overall redevelopment plan for The HarbourFront, the Master Plan of which has been given in-principle approval by the Urban Redevelopment Authority (URA). Under the Master Plan, the value of the site which spans from Keppel Automated Warehouse in the east, including the existing Maritime Square, Harbour Pavilion, World Trade Centre, Singapore Cruise Centre and Cable Car Towers, to the boundary with Keppel Shipyard in the west, will be enhanced as PSA transforms this place into a world-class waterfront development known as The HarbourFront.

The Master Plan calls for the development of five precincts: a Special Interest Village, Retail/Entertainment Hub, World Trade Centre Building, Cruise Terminal/Hotel and the Office Park. When fully developed, The HarbourFront will have a gross floor area (GFA) of about 447,500 square metres. (See Annex 1 for details.)

Under Phase One of the Office Park Development, The HarbourFront twin office towers comprising two 18-storey buildings flanking the Cable Car Towers will be built by 2003.

Keppel and PSA signed a Memorandum of Understanding to form a joint venture to develop Phase One of the Office Park Development to cooperate in the development of their respective properties at The HarbourFront and Keppel Harbour. PSA will be the majority shareholder in the joint venture as well as manager for the twin office towers development.

Under the joint venture, Keppel will purchase the building to the west of Cable Car Towers, and its new Headquarters will occupy part of this building. Both buildings will be available for lease.

Said Mr Sim Kee Boon, Executive Chairman of Keppel Corporation, “We are breaking new ground not only for the Keppel/PSA twin office towers but also this whole new city, which we envision to be a much sought after place to live and work in. For Keppel, this is a proud moment as its new headquarters will be here on this site, where it has sunk its roots more than 30 years ago and grown from a shipyard to a diversified conglomerate.”

Dr Yeo Ning Hong, Chairman, PSA Corporation Ltd said, “Today marks the beginning of the realisation of PSA’s vision to transform our prime waterfront area into a world-class development in the new millennium. We will develop the area into a scenic and bustling waterfront facility for business and leisure that both the people of Singapore and tourists alike can be proud of. For PSA, this presents an excellent opportunity to optimise the use of our existing assets. We are proud to have Keppel as our partner in Phase One of The HarbourFront project. By jointly developing the project with Keppel, we will overcome the problem of having an irregular boundary between our two land parcels. The combination of PSA’s and Keppel’s expertise and vast experience in property development will result in synergies that will enhance the development potential of our adjoining properties, and contribute to the success of The HarbourFront twin office towers.”

Annex 1 Background on Master Plan for The HarbourFront.

The Master Plan for PSA’s 20.3 hectares of prime waterfront property, in the vicinity of the existing World Trade Centre Building, was approved by the Urban Redevelopment Authority (URA) in March 1998.

Under the Master Plan, the site is to be developed into a world-class waterfront development offering prime business space and excellent leisure facilities. The Plan takes into consideration the integration and synergistic effects of the other properties and venues located at the southern tip of Singapore.

Five precincts have been earmarked for development:

(i) Special Interest Village, involving the existing Keppel Automated Warehouse site
(ii) Retail/Entertainment Hub to the east of the World Trade Centre (WTC) Building, where the exhibition halls and Expo Gateway are currently located
(iii) World Trade Centre Building
(iv) Office Park to the west of WTCB, in the vicinity of the Cable Car Towers
(v) Cruise Terminal/Hotel

The WTC Building and Cable Car Towers will be retained and refurbished. The retail and entertainment hub will benefit from the patronage of workers from the Office Park and residents in the Keppel Harbour area. The site will also be easily accessible via the MRT, which is expected to be completed by the Year 2002.

Jointly Issued by Keppel Corporation and PSA Corporation.