Google to vacate “a portion” of space at FLCT’s Alexandra Technopark

FLCT (Frasers Logistics & Commercial Trust) has revealed that Google, a major tenant at its property Alexandra Technopark, will give up a portion of the space from February 20th, 2024. According to FLCT, this space amounts to 1.7% of its gross rental income for the financial year ending December 2022.

While this development may be a concerning prospect to some, the Trust has stated that it will not have an impact on FLCT’s distribution for the year ending September 30th, 2023. The Manager of FLCT will continue to take proactive leasing initiatives and asset management strategies for ATP, and will make further announcements where appropriate.

In 2018, Google signed a five-year lease with FLCT, taking up 344,000 square feet at Alexandra Technopark. However, as reported by EdgeProp last December, the space was left empty and Google’s employees only resided at Mapletree Business City II, where Google holds 680,000 sq ft.

It appears Google has joined a growing list of tech companies that are downsizing in recent months, following an increased demand during the pandemic years. FLCT units were trading at $1.24 on February 22nd, a decrease of 0.8%.

Despite the circumstances, FLCT remains dedicated to providing proactive leasing and asset management strategies, and aim to make further announcements of any Tengah Plantation EC material developments.