SINGAPORE — Construction works to turn the former Park Mall site into a Grade A commercial building has commenced, with the new development expected to be completed by the end of 2019.

The development is estimated to cost about S$800 million, and is undertaken through a joint venture with SingHaiyi Group, Haiyi Holdings and Suntec Real Estate Investment Trust.

When completed, the site at 9 Penang Road will be transformed into two wings, comprising eight levels of office space across 352,000sqf of net lettable area and 15,000sqf of retail space on one floor.

In line with the Land Transport Authority and Urban Redevelopment Authority’s Walking and Cycling Plan, the new development will also feature facilities such as walking and cycling paths around the building, bicycle parking facilities, shower rooms and lockers.

Park Mall, which was built in 1971, used to be known as Supreme House.

In 1991, it was extensively refurbished and conceptualised as a premier furniture and lifestyle shopping mall.

Suntec Reit, which acquired Park Mall in 2005 for S$245.1 million, sold the building for S$411.8 million in December 2015 to a joint venture group of which it was a part, saying it planned to redevelop the building into a commercial development comprising two office blocks with an ancillary retail component.

It was taken back on Sept 30 last year for redevelopment works and demolition works commenced on Dec 1.

Mr Chan Kong Leong, chief executive Officer of ARA Trust Management (Suntec), the manager of Suntec Reit, said: “We are pleased to unveil the development plans for the new Grade A commercial building at 9 Penang Road ... The building is scheduled to complete by end 2019 when the new office supply is expected to be limited. The land lease where the former Park Mall was situated has also been extended to 99 years.”