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SINGAPORE: CapitaCommercial Trust (CCT) has decided not to redevelop the Market Street Car Park into a commercial building.
The redevelopment is estimated to cost up to S$1.5 billion.
CCT said the decision was based on the uncertain market outlook and conditions like tight credit and high redevelopment costs.
CapitaCommerical Trust Management CEO, Lynette Leong, said: "In line with our prudent approach to capital management and the need to conserve cash in such turbulent economic times, we decided not to proceed with plans to redevelop Market Street Car Park."
The project was first announced in January last year. But in April, CCT delayed the project and said it would make a firm decision only after the middle of 2009.
CCT also said its decision will remove any overhang in capital requirement and reassure its retail tenants and car park users. It said it can now move on to seal longer term leases and reposition the retail tenant mix to inject vibrancy to the area.
Separately, CCT also announced that it is refinancing S$580 million worth of commercial mortgage-backed securities. It has secured a three-year term loan with four banks - DBS, Standard Chartered, UOB and The Bank of Tokyo-Mitsubishi.
With the refinancing, eight properties out of 11 in CCT's portfolio with a total asset value of S$2.8 billion will be free of any encumbrance. - CNA/vm
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