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CAPITALAND, CapitaLand Commercial Trust (CCT) and Mitsubishi Estate Co are redeveloping Golden Shoe Car Park in the heart of Singapore's financial district into a mixed-use project for an estimated S$1.82 billion before acquisition costs.
The three parties will set up two single-purpose trusts - Glory Office Trust for the commercial portions of the development, and Glory SR Trust for the serviced residence portion - to carry out the redevelopment. CapitaLand and CCT will each hold 45 per cent in each of the trusts, while Mitsubishi will hold the remaining 10 per cent.
The joint venture will acquire the iconic car park from CCT for S$161.1 million, which is 10 per cent above the average of two valuations. CCT will however hold a five-year option from occupation to forcibly acquire its partners' stakes at market valuation, subject to a minimum price based on the total development cost less net property income from the office components, at 6.3 per cent annual interest.
The total development cost of S$1.82 billion includes S$957.8 million for land-related costs and the differential premium, which is how much the joint venture has to pay to change the land use from "transport facilities" to "commercial".
The current plan is for a one million sq ft, 51-storey development reaching 280 m, matching the tallest buildings in the Raffles Place area. It will have 29 floors of Grade A office space on the top with 635,000 sq ft of net lettable area; an eight-storey, 299-unit serviced residence to be managed by CapitaLand's The Ascott; five floors of car park with about 350 lots, 10 motorcycle lots and 165 bicycle lots; and 12,000 sq ft of ancillary retail space.
Lunch-goers in the financial district should take note: The second and third levels will be a food centre that will house the former stallholders of the Market Street Food Centre that now sits within the property. The Ministry of the Environment and Water Resources will own the food centre. From Aug 1, 2017 until the estimated completion in 2021, those stallholders will operate from an interim food centre next to Telok Ayer MRT Station on Cross Street.