CapitaLand Commercial Trust Management Limited (CCTML), the Manager of CapitaLand Commercial Trust (CCT or Trust) announced that it has submitted plans to the relevant government authorities to redevelop Golden Shoe Car Park (GSCP) into commercial development which will include an office tower.
The 10-storey building is strategically located at Raffles Place, in the heart of Singapore’s Central Business District (CBD).
According to CCT, the redevelopment could potentially create commercial gross floor area of approximately one million square feet and comprise an office tower of up to 280 metres above ground, on par with the tallest buildings in the CBD.
It said that a new food centre owned by the government is expected to replace the existing food centre and adjoin the new office tower.
The existing land lease of GSCP will expire on 31 January 2081, and the current zoning is for transport use. Therefore, authorities’ approvals have to be sought for a change of use to Commercial, subject to payment of a differential premium and rezoning of the Master Plan.
CCT said that it had engaged in preliminary discussions regarding the proposed redevelopment of the site with the relevant government authorities, including Land Transport Authority (LTA), National Environment Agency (NEA), Singapore Land Authority (SLA) and Urban Redevelopment Authority (URA).
CCT said that the Trust will evaluate appropriate investment and funding structures including a joint venture and sale of existing asset. CCT said that its targets are to commence the redevelopment of GSCP by the second half of 2017, subject to obtaining all relevant approvals and completion of a feasibility study.
Chief Executive Officer of CCTML, Ms Lynette Leong, said, “We are excited about the prospect of creating a distinctive, world-class office building in the heart of Singapore’s CBD. We are confident of the long term demand for quality office space in Singapore, and there is no known new supply in Raffles Place beyond 2018. If we obtain the necessary approvals and commence the redevelopment in the second half of 2017, we target to complete construction of the new project in 2021.”
“We are constantly seeking value-creation opportunities in line with our portfolio reconstitution strategy, with a view to generating higher returns for CCT’s unitholders. In December 2014, we successfully completed the redevelopment of Market 2 Street Car Park into an iconic, premium Grade A office tower now known as CapitaGreen. We are proud that this award-winning and environmentally-sustainable building has enhanced the skyline of Singapore’s CBD and is home to a prestigious list of companies. The proposed redevelopment of Golden Shoe Car Park will be another opportunity for us to catalyse sustainable value for CCT.” she added.
CCT said that not withstanding the pending approvals, tenants of GSCP will be informed today (20 October) that they are expected to vacate the property by 31 July 2017. Vehicle owners with season parking at GSCP will also be notified about CCT’s intention to redevelop the property.
It said that the car park operation will continue until 31 July 2017 and vehicle owners may continue to park there at season and hourly rates. The current stallholders at Market Street Food Centre at GSCP will be informed today of the possible redevelopment plans.
CCT will work with NEA and the relevant authorities to provide an interim food centre in the vicinity of GSCP to ensure that the current stallholders can continue their business during the redevelopment period should approvals from all the relevant authorities be obtained and the proposed redevelopment proceeds. The stallholders will be relocated to the new government-owned food centre within the new development upon its completion.
CCT said that as there is no certainty of any deal materialising, CCT advised unit holders to exercise caution in trading the units of CCT. An announcement will be made through the SGX-ST should there be any material development on this matter as and when appropriate in accordance with the Listing Rules of the SGX-ST.
In July 2011, the district lost 704 carpark spaces in July 2011 after CCT decided to turn Market Street Carpark, then Singapore’s oldest multi-storey carpark, into a new office development called CapitaGreen.
If this plan continues to run, then the district will also lose another 1,053 parking spaces.
Due to high demand, according to the Straits Times, as at 10 October, there were 79 people waiting to get a season parking space at Golden Shoe. A nearby parking lot, Shenton House, had more than 100 people on its waiting list to get the season parking space.
This announcement follows an earlier statement in 2013 by a CCT spokesman that there were no definitive plans to redevelop Golden Shoe, saying that the Trust is focusing on its CapitaGreen project, which is expected to be completed by the end of 2014.