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SINGAPORE (BLOOMBERG) – Amazon plans to take over Citigroup’s Singapore office space at a time when several of the e-commerce giant’s Chinese tech rivals are expanding here.
The online retail giant will lease three floors covering approximately 90,000 square feet in Asia Square Tower 1 in the heart of the financial district, according to people with knowledge of the plans. Staff will move to the new offices early next year, said the sources, who asked not to be identified because the plans are not public.
Citigroup, currently the largest tenant in the nine-story building, is cutting back on its office space to better use its real estate as its 10-year lease expires soon, the people said.
Amazon’s plans in Singapore come as some of China’s largest tech corporations, such as Tencent, Alibaba Group, and ByteDance, make the island state their beachhead for the rest of Asia. Singapore is becoming a regional base for Western and Chinese companies due to its developed financial and legal systems. It is becoming more attractive to some as Beijing tightens its grip on Hong Kong.
WORK OFFERS
Amazon currently has about 200 open positions in Singapore for positions spanning data analytics, sales and advertising, business development and marketing and public relations, according to its career site.
An Amazon representative declined to comment. A Citigroup spokesperson confirmed that the bank is releasing the space, but declined to say which tenant will take over. Some of the consumer banking staff and employees in other functions will move to the Changi Business Park, where the bank has larger facilities and a long-term lease, he said.
Amazon, which has been expanding rapidly in Singapore in recent years, has offices at Capital Square and One George Street. A lease for the space being taken at Asia Square Tower 1 would typically be for more than five years.
CUT COSTS
Citigroup is among financial firms around the world grappling with what work life will be like after a pandemic, and some companies like Nomura and Fifth Third Bancorp see opportunities to cut expensive real estate by keeping some of the staff at home.
Although the Singapore government has eased some restrictions around the virus, such as allowing more workers to return to the office, remote working remains the default option.
Citigroup is reviewing its workspaces due to the virus and looking for other ways to work to allow for flexible arrangements, the spokesperson said.
The bank said on Tuesday (September 29) that it will open its largest wealth management center globally in Singapore in December, as it targets double-digit growth in the nation. The facility, called the Citi Wealth Hub at 268 Orchard, will open with space for more than 300 relationship managers and product specialists.
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