Raffles City Tower to get $34.7m facelift
CapitaCommercial Trust (CCT) and CapitaMall Trust (CMT) will pump in $34.7 million to revamp Raffles City Tower, the 42-storey office tower of Raffles City Singapore.
In a joint statement released yesterday, managers of the
Reits said the move was aimed at enhancing Raffles City Tower's allure as a
choice location for businesses.
"It is an opportune time to refurbish the office tower
now, given that the City Hall/Beach Road area in which Raffles City is located
currently has low vacancy rate and there is no new office supply completing in
the next two years," said Lynette Leong, chief executive of CCT
Management.
The enhancements to the building include upgrading of the main lobby and installation of security turnstiles and a close-circuit television system. Common areas, lift lobbies and restrooms on all office floors will be refurbished, too.
The enhancements to the building include upgrading of the main lobby and installation of security turnstiles and a close-circuit television system. Common areas, lift lobbies and restrooms on all office floors will be refurbished, too.
The asset-enhancement works will start in November this
year. Existing office tenants will continue to operate in the building.
The works will be carried out in phases progressively until
the second quarter of 2014 to minimise inconvenience to existing occupiers,
managers of the Reits said.
Raffles City Tower currently has an occupancy rate of 99 per
cent. It last had its common areas, including restrooms and lift cars, upgraded
in 1994 and 2010, respectively.
"In 2010, the direct connection to the new Esplanade
MRT station on the Circle Line of the MRT system was opened, and it has since
introduced more traffic into Raffles City," said Wilson Tan, chief executive
of CMT Management. "With the completion of the Basement 2 link of Raffles
City Shopping Centre in 2010, the next focus of asset enhancements on the
office tower is a natural progression," he added.
The initiative is expected to generate an 8.6 per cent
return on investment.
Raffles City is jointly owned by CCT and CMT through an
unlisted special-purpose sub-trust, RCS Trust. CCT and CMT respectively own 60
per cent and 40 per cent of the property.
Source: Business Times – 6 October 2012