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CapitaLand, CapitaLand Commercial Trust (CCT) and Mitsubishi Estate Co. (MEC) recently teamed up to redevelop the Golden Shoe Car Park (GSCP) in Raffles Place into a landmark integrated project (pictured) with a total development cost of $1.82 billion.
Expected to be completed by H1 2021, the 51-storey development will come with 299 serviced residences spanning eight levels that will be run by The Ascott Limited, and 29 floors of premium Grade A office space with a net lettable area of 635,000 sq ft on the top levels.
It will also feature 12,000 sq ft of ancillary retail space, five floors of car park capable of accommodating around 350 vehicles and 10 motorcycle lots, giving the project a gross floor area of about one million sq ft.
In line with this, the three parties have created two unlisted special purpose sub-trusts – Glory Office Trust and Glory SR Trust – that will own the development’s office and serviced residence components respectively.
According to an SGX filing on Friday (22 September), CCT’s trustee HSBC Institutional Trust Services (Singapore) holds a 45 percent stake in both sub-trusts. CapitaLand owns another 45 percent stake in each entity via Glory Office and Glory SR, while MEA Commercial Holdings owns 10 percent in both.
Moreover, the project will be financed via a combination of external funding and financial commitment from the JV partners.
Among these is a $728 million commitment. Of this, up to $536 million will be provided through unitholders’ loans that will be drawn down progressively in multiple tranches. This debt will bear an interest rate of 2.5 percent per annum or another agreed rate.
Assuming that the unitholders’ loans will be taken out in a single tranche and has tenure of five years, the loan’s interest is expected to reach approximately $67 million.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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