It was generally a happy day for Singapore’s blue chips with the Straits Times Index (SGX: ^STI) climbing 0.83% to 3,236 points. However, two STI components managed to beat the market and they are CapitaLand Limited (SGX:C31) and CapitaLand Commercial Trust (SGX:C61U).
It was jointly announced this morning that the two outfits have formed a joint venture (JV) with Mitsubishi Estate Co., Ltd. (MEC) to redevelop Golden Shoe Car Park (GSCP) located at the Raffles Place area into an integrated development. The total development cost is estimated to be S$1.82 billion and it is expected to be completed in the first half of 2021. Upon completion, the 51-storey integrated development, that will stand at 280 metres, will comprise of Grade A offices, serviced residences with 299 rooms, ancillary retail and a food centre.
Under the JV agreement, CapitaLand and CapitaLand Commercial Trust (CCT) will each hold a 45% interest. MEC, meanwhile, will hold a 10% interest in two unlisted special purpose sub-trusts that were set up to own the office and serviced residence components of the development.
Mr Lim Ming Yan, President & Group Chief Executive Officer of CapitaLand Limited said the following:
“Given GSCP’s strategic location in the heart of Raffles Place, we are pleased to redevelop it into an iconic, integrated development with the latest ‘future of work’ innovations such as workspace personalisation, seamless connectivity, and flexible and collaborative workspaces. The integrated development will serve a new generation of dynamic professionals who want to be part of vibrant, virtual and physical communities that enhance their overall work-life experiences. Combined with exciting lifestyle components, we believe this new integrated development will fulfil their intertwined work, live and play aspirations in one central location.”
CapitaLand rose 1.1% to close at S$3.57 while CCT ended the day at S$1.67, up 1.2%.
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