Source : Straits Times - 30 Apr 2008
CAPITACOMMERCIAL Trust (CCT) is deferring its planned redevelopment of Market Street carpark into a $1 billion to $1.5 billion premium office building due to volatile market conditions.
The plan was announced early this year amid concerns that the carpark crunch in Raffles Place is worsening. Now, a decision will be made not earlier than mid-2009, said the trust’s manager yesterday.
‘Taking into consideration the significant size of this project, rising construction costs and the present volatility in financial markets, the manager is carefully evaluating the financial viability of the funding structure for the redevelopment,’ said its chief executive, Ms Lynette Leong.
In early January, CCT was granted provisional planning permission for the redevelopment - conditional upon the trust paying a development premium for changing the use of the 58,964 sq ft site from a carpark to an office tower.
This is to be assessed by the chief valuer. A second condition is that there will be no extension of the site’s existing leasehold land tenure.
Ms Leong said the deferment would give CCT time to plan and develop a sustainable architectural plan for the building.
She said a decision to redevelop will take into account the amount of development premium payable.
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