In April, CCT and CapitaMall Trust jointly announced that Raffles City Shopping Centre ("RCSC"), the retail component of Raffles City, will increase its retail Net Lettable Area ("NLA") by about 3,809 square metres ("sq m") under Phase 1 of its asset enhancement plans. The newly-created NLA will be added to Basement 1 (2,454 sq m), Level 1 (652 sq m) and Level 2 (703 sq m), thus significantly increasing the retail NLA on all these levels. These reconfigured areas have already received strong indications of interest. Concurrently, the tenancy mix on Level 1 will be strengthened with the introduction of more international fashion and accessory brands to enhance the overall retail offering in RCSC.

The asset enhancement works on these levels are expected to be completed around end-2007.

As part of the asset enhancements, a three-storey island podium which incorporates a stunning water feature will be constructed in the atrium of RCSC. Levels 1 and 2 of the podium will be designated for retail, while level 3 would serve as an elevated atrium space for hosting events.
 
With the Malaysian real estate market undergoing a stage of rapid growth underpinned by healthy economic performance, Malaysia has been identified as one of the target markets to expand CCT’s regional portfolio.

In January this year, CCT took a substantial 30% stake in Quill Capita Trust ("QCT"), a commercial REIT listed on the Bursa Malaysia Securities Berhad with an initial portfolio of four commercial properties in Cyberjaya.

In March, CCT took a 7.4% stake (US$20 million) in the Malaysia Commercial Development Fund ("MCDF"), CapitaLand’s first and largest Malaysia private real estate fund, with focus on real estate development primarily in Kuala Lumpur and the Klang Valley.

In addition, CCT has invested in 100% of the junior bonds issued by Aragorn, a special purpose vehicle set up to own Wisma Technip through an asset-backed securitization structure. In June, it was announced that Aragorn has signed a conditional sale and purchase agreement with QCT for the proposed sale of Wisma Technip for RM125 million.
 
 
 
Artist’s impression of proposed 3-storey Island Podium.
 
The ground floor at Capital Tower is now home to exciting retail shops comprising Ermenegildo Zegna, a renowned name in luxury men’s apparel which marked the opening of its first store in Singapore’s Central Business District ("CBD"); Cork, a cutting-edge bistro wine bar which also offers catering services; and Bang & Olufsen, which offers high-quality audio and video products alongside with the exclusive Fritz Hansen furniture, lighting and other sophisticated installations for the home.