SINGAPORE (July 13): CapitaLand, CapitaLand Commercial Trust (CCT), Mitsubishi Estate (MEC) have formed a joint venture (JV) to redevelop Golden Shoe Car Park (GSCP) into a landmark integrated development in Raffles Place, which is estimated to cost a total of $1.82 billion.

This comes after CCT’s assessment of the redevelopment’s financial feasibility with the differential premium (DP) amount payable for GSCP’s enhancement in land use from ‘transport facilities’ to ‘commercial’, which has been determined and notified by Singapore Land Authority (SLA).

The new integrated development will stand at 51-storey with a height of 280m – on par with the tallest buildings in Raffles Place, according to the companies in a joint release on Thursday.

The project is designed by a collaborative team of Bjarke Ingels Group (BIG) and Carlo Ratti Associati (CRA).

It will feature 29 floors of premium Grade A office space on the top floors spanning 635,000 sq ft of net lettable area (NLA); an eight-storey, 299-unit serviced residence to be managed by The Ascott Limited; five floors of car park with about 350 lots, 10 motorcycle lots, 165 bicycle parking lots; and 12,000 sq ft of ancillary retail space.

There will also be four contiguous and connected floors of open-air, landscaped and technology-enabled areas for meetings and recreational activities.

Former stallholders of Market Street Food Centre in GSCP will relocate to the second and third levels of the development’s podium, at a food centre owned by the Ministry of the Environment and Water Resources.

Meanwhile, these stallholders will operate from an interim food centre located next to Telok Ayer MRT station on Cross Street from Aug 1 until the integrated development’s completion, which is estimated for 1H21.

Tenants of GSCP are expected to vacate the GSCP property Jul 31, after which car park operations will cease.

Under the JV agreement, CapitaLand and CCT will each hold a 45% interest in two unlisted special purpose sub-trusts, namely Glory Office Trust and Glory SR Trust, set up to own the office and serviced residence components of the development respectively.

MEC will hold a 10% interest in the sub-trusts.

A call option has been granted to CCT to acquire CapitaLand’s and MEC’s interests in Glory Office Trust at market valuation, which may be exercised over five years after temporary occupation permit (TOP) of the new development is obtained.

Additionally, the JV will acquire GSCP from CCT at a price of $161.1 million – 10% above the average valuation of GSCP with the redevelopment potential of $146.5 million, and 14.3% above GSCP’s valuation as a car park facility of $141.0 million as at end-2016.

“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,” says Lim Ming Yan, president and group CEO of CapitaLand.

“The redevelopment of GSCP will reinforce CapitaLand’s foothold in Singapore’s CBD and provide us with another opportunity to lead the way in building integrated developments of the future.”

Shares of CapitaLand closed 2 cents higher at $3.53 on Wednesday, while units of CCT closed 3 cents lower at $1.65.