CapitaCommercial Trust (CCT) has entered into a facility agreement with DBS, Standard Chartered Bank, UOB and The Bank of Tokyo-Mitsubishi UFJ, Ltd, for a secured three-year term loan of up to S$580 million for CCT. The term loan will be drawndown in March 2009 to refinance the borrowings under the S$580 million commercial mortgage-backed securities (CMBS). The CMBS is secured by the seven properties in the initial portfolio. However, the term loan will only be secured by Capital Tower. As a result, out of CCT’s portfolio of eleven properties, eightproperties with a total asset value of S$2.8 billion will be free of any encumbrance. This will provide CCT with financial flexibility in managing its capital and balance sheet. The all-in interest cost is well within CCT's projections. In addition, CCT has decided to abort the redevelopment of Market Street Car Park into a Grade A office/commercial building. Although the Manager had stated in April 2008 that the decision on the planned redevelopment would be made only after mid-2009, the Manager after taking into consideration the uncertain market outlook, tight credit conditions, high redevelopment cost and significant size of the project, has decided to abort the project immediately. CCT's CEO Ms Lynette Leong said the move will also give assurance and security of tenure to the car park users as well as retail tenants. CCT can move on to enter into longer term leases and adopt longer term plans through repositioning the retail tenant mix and other promotional events or activities to inject vibrancy to the area.