CCT open to options on Market Street carpark

Source : Business Times - 23 Jul 2008

CapitaCommercial Trust (CCT) has said that it is ‘open to all options’ when it comes to plans for Market Street Car Park (MSCP), and these include selling the site.

CCT had obtained outline planning permission from the Urban Redevelopment Authority to redevelop MSCP into an office tower for $1 billion to $1.5 billion.

In April, the trust said that it was evaluating the project’s financial viability and funding structure, and would not decide on redevelopment anytime before mid-2009. It cited the project’s significant size, rising construction costs, volatility in financial markets and the uncertain development premium as reasons for the deferment.

Responding to an analyst’s query on whether CCT would consider selling MSCP instead, CapitaCommercial Trust Management Limited’s (CTML) CEO Lynette Leong said that ‘We are open to all options.’ She pointed out that the development premium required remained uncertain, and construction costs have been increasing.

‘If it makes sense to sell it, why not? We will not rule out that option,’ said Ms Leong. — Emilyn Yap, BT Newsroom