CCT to redevelop Golden Shoe Car Park

Trust posts 7.5 per cent growth in DPU for Q3 on acquisition of CapitaGreen office building

CAPITALAND Commercial Trust (CCT) has submitted plans to redevelop Golden Shoe Car Park (GSCP) into a commercial development that will include an office tower and a new government-owned food centre.

CCT said on Wednesday that GSCP, a 10-storey building located at Raffles Place and at the heart of the Central Business District (CBD), could potentially be redeveloped to create commercial gross floor area of about one million square feet.

It will comprise an office tower of up to 280 metres above ground, which is "on par with the tallest buildings in the CBD". A new food centre owned by the government is expected to replace the existing food centre and adjoin the new office tower.

The trust said that it will work with the relevant authorities to provide an interim food centre in the vicinity of GSCP to ensure that current stallholders can continue their business before relocating to their new premises.

There is no certainty of any deal materialising as the redevelopment is subject to the authorities' approval for the conversion of GSCP's current zoning of "transport" to "commercial", which is in turn subject to the payment of a differential premium and rezoning of the Master Plan.

Preliminary discussions on the proposed redevelopment of the site have begun, according to CCT. The trust aims to commence the redevelopment of GSCP by the second half of 2017; the existing land lease of GSCP will expire on Jan 31, 2081.

On Wednesday, CCT reported a distribution per unit (DPU) of 2.30 Singapore cents for the financial quarter ended Sept 30 (Q3 2016). This marks a year-on-year DPU growth of 7.5 per cent from last year's 2.14 cents.

Distributable income increased by 8.1 per cent to S$68.3 million, up from S$63.15 million a year ago.

Gross revenue for Q3 grew 8.9 per cent to S$74.4 million and net property income grew 8.3 per cent to S$57 million. CCT said that the increase was due to CapitaGreen's 100 per cent contribution since the completion on Aug 31 of CCT's acquisition of a 60 per cent stake in MSO Trust, which owns CapitaGreen, a Grade A office building.

CCT added that the completion of the acquisition of CapitaGreen was ahead of the projected date of Oct 1. In addition to CapitaGreen's substantially higher contribution (from September 2016), CCT's 60 per cent interest in Raffles City Singapore also registered additional contribution to CCT's Q3 distributable income.

CCT said: "The completion of CapitaGreen's acquisition has given CCT's DPU a boost this quarter and will continue to contribute to CCT group's performance. The redevelopment of CapitaGreen from the former Market Street Car Park is a testament to CCT's successful execution of portfolio reconstitution strategy." It added that the proposed redevelopment of GSCP is "with the hope of repeating the same success as CapitaGreen".

The trust's portfolio includes Capital Tower, Six Battery Road, One George Street and HSBC Building. As at Sept 30, the total value of the trust's deposited properties was S$8.68 billion and the adjusted net asset value per unit was S$1.72, after deducting distributable income payable to unitholders.

The Q3 DPU will be distributed with the Q4 DPU in February 2017; CCT pays out semi-annually.

CCT units on Wednesday added two Singapore cents to close at S$1.575.

Source: Business Times, 20 Oct 2016