In July 2011, a joint venture agreement was signed by CapitaLand, CapitaCommercial Trust ("CCT") and Mitsubishi Estate Asia ("MEA") to redevelop Market Street Car Park into a Grade A office tower. Under the agreement, CapitaLand, CCT and MEA own 50%, 40% and 10% interest respectively in MSO Trust, an unlisted special purpose sub-trust set up to undertake the development. A management committee comprising members of CapitaLand Commercial Limited and the manager of CCT manages the day-to-day matters of the trust.
The total project development cost is estimated to be S$1.4 billion and will be funded by the three parties in proportion to their respective joint venture interest. The new Market Street office tower when completed in second half of 2014 is expected to generate a yield-on-cost of more than 6% per annum on a stabilised basis.
Designed by Toyo Ito, the 40-storey office tower will have net lettable area of about 720,000 square feet.