Space market analysis refers to a consultative and cooperative approach to provide the best accommodation for redeveloping or relocating a place. In context with Apartment Service, it has led the way to openly promote awareness of a sector (Haila, 2015). It works as an agent who realise needs of customers for smart data, dynamic pricing and cost control. Present report is going to reveal space market analysis of service apartment. It is based upon a case study on integrated development at 88 Market Street in
As per present scenario, in Singapore three main companies have formed a joint venture for redeveloping Golden Shoe Park (GSCP) into a landmark integrated development in Raffles Place. It includes CapitaLand Limited, CapitaLand Commercial Trust (CCT) and Mitsubishi Estate Co. Ltd (MEC). In order to form joint venture, these companies have made an agreement where CapitaLand and CCT both will hold a 45% interest, whereas MEC will get 10% only. For this purpose, they have also set up their office and service residence components, named by Glory Office Trust and Glory SR Trust respectively (Hin David Ho, Rengarajan and Glascock, 2014). It is estimated that for total development, near about S$1.82 billion is required, under which each business partners will make investment as per proportion of their respective interests. Further, for taking approval from governmental authorities to redevelop GSCP into mix-use development, CCT have also submitted plans. After receiving approvals from regulatory bodies and notifications from authorities of Singapore Land Authorities, CCT has assessed the financial feasibility of redevelopment and decided to carry out project by a joint venture.
As per this project, after redevelopment, this 51-storey GSCP will rise to a height of 280m. This will raise to 29 features of premium Grade A where approx. 635,000 square feet an office space is available on top floor. Further, an 8-storey i.e. 299 unit serviced residence is managed by The Ascott Ltd. where, five floors of car park having 350 lots, 165 bicycle parking lots, 10 motorcycle lots and 12000 square feet for ancillary retail space. This development will boast of a Green Oasis with a height of near about 30 m, it connects four contiguous and connected floors of landscaped, open-air and technology enabled areas. Here tenants can enjoy environment of shared space for meetings, conversation, wellness programmes and other activities. While, on other levels of podium of development, there will be a food centre which is owned by Ministry of Environment and Water Resources. From 1 August 2017 to 2021, it has estimated that first half of project related to integrated development, will be completed.
According to this figure, it has examined that deposited property as on 31 Dec 2017, which include the valuation of investment properties is S$10,761.0 million. After issue of temporary occupation permit (TOP), within five years, purchasing rate may be higher than base price. In this regard, from the estimated total development cost i.e. near about S$1.82 billion, approx. 52% of it is required for DP (Differential Premium) and land related cost which is to be funded by joint venture partners. Along with this, they will also acquire S$161.1 million from CCT which is assumed as 10% above from average valuation of this product with redevelopment potential of S$146.5 million. Further, at market valuation, for acquire CapitalLand's and MEC's interest in Glory Office Trust, is subjected to a minimum price (Khoo-Lattimore and Prayag, 2015). This is based on total development cost excluding financial cost to the office. With this assistance, ancillary retail components less net property income attributable to Glory Office Trust is compounded at 6% per annum. Over a period of five years, after obtaining the temporary occupation permit of redevelopment, CCT may exercise the call option. In addition to this, there is a drag-along right granted to CCT and CapitaLand over units of MEC in Glory SR Trust, in the same period of five years.
From this assignment, it has summarised that redevelopment of Golden Shoe Car Park will raise its height on par with the tallest building in Raffles Place. It will provide extremely beneficial accommodation for office and tenants who can share spaces for business meetings, conversations and other activities. With the support of governmental authorities and ministry, joint venture partners can gain success to implement their project more successfully.
- Khoo-Lattimore, C. and Prayag, G., 2015. The girlfriend getaway market: Segmenting accommodation and service preferences. International Journal of Hospitality Management. 45. pp.99-108.
- Hin David Ho, K., Rengarajan, S. and Glascock, J., 2014. An examination of the structure and dynamics of Singapore's maturing Central Area office market. Journal of Property Investment & Finance. 32(5). pp.485-504.
- Haila, A., 2015. Urban land rent: Singapore as a property state. John Wiley & Sons.