Frasers Logistics & Commercial Trust reports that Google, the major tenant of its property Alexandra Technopark, will give up a portion of the space beginning Feb 20, 2024. This space constitutes 1.7% of the total gross rental income for Dec 2022. Nonetheless, FLCT states this will not have an impact on the distribution for the year ending Sept 30, 2023. Further announcements regarding other material developments will be made by the Manager, as deemed fit.

Google had taken up 344,000 sq ft of the Alexandra Technopark space five years ago, as reported by EdgeProp last December. However, instead of actually moving in, the US internet giant has occupied 680,000 sq ft at the neighbouring Mapletree Business City II.

Recently, Google has been among a growing list of tech companies laying off staff, despite their hiring spree lasting through the pandemic. Following their announcement, FLCT units closed at $1.24 on Feb 22, seeing a 0.8% decline.

The Manager is currently working on proactive leasing initiatives and JCube Residence asset management strategies for the non-occupied ATP space and will continue to make necessary announcements. Meanwhile, the similar pattern of downsizing by tech companies may indicate an uncertain future for FLCT investors.