Singapore-listed office REIT, CapitaLand Commercial Trust, has entered into a joint venture with its sponsor and Mitsubishi Estate to redevelop the Golden Shoe Car Park into a 51-storey integrated property with offices, serviced residences, and an ancillary retail component.

Under the joint venture agreement, CapitaLand Commercial Trust and its sponsor will each hold a 45% interest in two unlisted special purpose sub-trusts that will own the office and serviced residence components of the development respectively.

Accordingly, Mitsubishi Estate will hold the remaining 10% interest in the sub-trusts.

The total development is estimated to cost SGD1.82 billion (USD1.3 billion), and will be funded by the joint venture partners in proportion to their respective interests.

CapitaLand Commercial Trust will fund its share of the redevelopment via debt, and proceeds from recent divestments.

The new 51-storey property will feature gross floor area of about one million square feet, and rise to a height of 280 metres, on par with the tallest buildings in Raffles Place.

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