SingPost banks on higher rental income after extensive machinery upgrade

It will free up level 7 of SingPost Centre.

The Postman can bank on additional rental income after completing an extensive machinery upgrade, which will allow the Postman to free up level 7 of the Singapore Post Centre.

According to UOB Kay Hian, SingPost’s machinery upgrade resulted in a reduction in the number of machines needed, from utilising 26 sorting machines in the past to 16 of them currently.

These machines used to occupy levels 3, 5 and level 7 of the Singapore Post Centre for its mail sorting and segregating operations.

“We understand that level 7 sits on a total land area of around 30,000 sf and the group has yet to decide the eventual utilisation for the freed-up area. However, given our assumption that half of the floor is rented out, and the other half is used for internal purposes, the freed-up space is expected to bring in an additional S$1m in rental revenue for the group annually,” stated UOB Kay Hian.