CapitaLand (CAPL) announced that, for the redevelopment of Golden Shoe Car Park in Raffles Place into an integrated development, it will form a joint venture with CapitaLand Commercial Trust (CCT) and Mitsubishi Estate Co Ltd (MEC).

CAPL and CCT will both hold 45% stakes in the JV while MEC will take a 10% interest in two unlisted special purpose subtrusts to own the office and serviced residence components of the development. The total development cost is estimated at S$1.82b and will be funded by the JV partners in proportion to their respective interests.

The new integrated project will be 51 stories high and have a GFA of about one million square feet, of which 29 floors will comprise premium Grade A office space and an eight storey 299-unit serviced residence to be managed by The Ascott Ltd – CAPL’s serviced residences unit.

Maintain BUY on CAPL with an unchanged fair value estimate of S$4.07.

Source: OCBC Research - 13 Jul 2017