Singapore is planning to transform an ex-British Army camp 15-minutes off the central business district into a hedge-fund capital modelled after Greenwich, Connecticut, underscoring the city-state's continuing ambitions as a financial powerhouse, according to Bloomberg.

Hedge fund managers have been asked by the Monetary Authority of Singapore and the JTC to survey the area, called Nepal Hill, in January and consider its business potential. The project hopes to emulate that of Greenwich in the US, which is 48 kilometers away from midtown Manhattan and plays home to many US hedge fund companies. If such a venture goes ahead it would signify how Asian financial centres are seeking to increasingly rival, if not surpass, their Western counterparts.

The MAS was not immediately available for comment by this publication at the time of going to press.

The location might be different from the usual high-rise environment investors have gotten used to in the CBD, but rents in the island are likely to be lower at the onset, with the potential for expansion. The city-state is looking to expand its business offering to both local and international investors as it seeks to become Asia's financial hub, the news service said.

The plan comes at an opportune time for Singapore, especially after a survey by Colliers International in February revealed that the city-state saw a 46 per cent drop in the average rent in the fourth quarter. JTC, the government agency responsible for marketing and developing Nepal Hill, will likely try to lure investors with very attractive and low-cost offers at the start.
 
"The hub idea on paper is great, but it needs to be encouraged," Stephane Pizzo, the founder of hedge fund firm Lotus Peak Capital, was quoted as having said. "The more people and incentives to move there, the better."

Nepal Hill used to house British Army personnel and their families spans 180 hectares and offers an alternative location for Singapore's fast-growing hedge fund sector. A recent survey by the Alternative Investment Management Association shows that Singapore is second to Hong Kong in terms of hedge fund industry size, overseeing at least $34.9 billion.

"Nepal Hill has been chosen for its unique ambience of black and white architectural heritage amid the key research clusters and these bungalows nestled in lush tropical foliage will be the ideal setting for offices for the alternative investments," the JTC and the Monetary Authority reportedly said.