Category Archives: Developers

CapitaLand to jointly develop Market Street Car Park

Posted on 19 Apr 2011 | Comments Off on CapitaLand to jointly develop Market Street Car Park

CapitaCommercial Trust (CCT) and its parent company CapitaLand plan to jointly develop Market Street Car Park into a office tower.

The project cost is estimated to be about S$1.4 billion.

In a joint statement, both companies said that based on this figure, the development is considered financially viable.

The stabilised yield from the completed development is expected to exceed 6 per cent per annum.

CCT will have a 40 per cent stake in the development.

This is in accordance with a regulation preventing real estate investment trusts from undertaking projects that exceed 10 per cent of their asset sizes.

The new tower will be 245 metres high, with an estimated gross floor area of 887,000 square feet.

It is expected to be completed by the end of 2014.

The property has a land lease of 62 years.

Separately, CCT has posted a lower distribution per unit for the first quarter compared to the same period last year.

For the three months ending March, it distribution per unit was 1.84 Singapore cents – down 4.1 per cent.

Revenue for the first quarter fell 10.6 per cent on-year to S$91 million.

The decline was mainly due to a loss in rental income from property divestments and lower revenue from its Six Battery Road property.

Source : CNA – 19 Apr 2011

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Posted in Developers, Office / Retail / Industrial

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South Beach consortium secures S$1.6b in new funding

Posted on 19 Apr 2011 | Comments Off on South Beach consortium secures S$1.6b in new funding

A consortium established to develop South Beach, the commercial and lifestyle hub at Beach Road, has successfully secured S$1.6 billion in new funding.

The funds will be used to refinance its S$800 million bank loan facility and to finance the construction of South Beach. The five-year secured term loan is provided by a syndicate of banks including DBS, UOB, OCBC, HSBC and Sumitomo Mitsui.

The announcement comes as the consortium undergoes some changes in its investor line up.

IOI Corporation became the consortium’s newest investor after acquiring the 33.33 per cent stake held by Elad Group Singapore, earlier this month.

Meanwhile, the consortium’s majority shareholder City Developments also announced that it had acquired the Istithmar Beach Road FZE’s 33.33 per cent stake in the project, through its joint venture firm Scottsdale Properties.

A restructuring deal was subsequently concluded between CDL and IOI, following which CDL now holds a 50.1 per cent stake while IOI holds the remaining 49.9 per cent stake in the consortium.

South Beach comprises two blocks of premium office space, a luxury hotel, city residences and high-end retail space.

Construction has begun, and is on track for completion in 2015.

Source : CNA – 18 Apr 2011

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Posted in Developers, General

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