Raffles Place hasn’t lost lustre as business district: CapitaCommercial Trust

CapitaCommercial Trust (CCT) believes that Raffles Place has not lost its attraction as a business district.

This is according to its chief executive officer Lynette Leong, who spoke on the sidelines of the trust’s Annual General Meeting on Wednesday.

CCT has three office properties in the Raffles Place area.

The new Marina Bay Financial Centre has been attracting many financial institutions to relocate from the Central Business District.

But existing tenants are making use of that to potentially expand their offices located in CCT’s buildings such as Capital Tower and One George Street.

CCT said it is also reviewing its plans for StarHub Centre.

It is looking to allocate up to 80 per cent of Starhub Centre’s gross floor area for residential use, while the rest will remain for commercial purposes.

The trust said going forward, the office market is bottoming out and remains confident of the overall office market.

“There are encouraging signs that the office demand has recovered and office market rentals may have reached a bottom,” said Leong. “However, there is still 4.5 million square feet of new office space coming onstream in the next two years that is largely uncommitted.

“So there are no clear signs whether office market rents will recover immediately and to what extent. So we will have to wait for that.

“But given CCT’s financial flexibility and our well-located properties, as well as our proven management track record, we believe we should be able to capture and ride the recovery when it happens.”

Source : Channel NewsAsia – 28 Apr 2010

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