Hotel site in Tanjong Pagar area up for sale

Published November 2, 2010

Hotel site in Tanjong Pagar area up for sale
Tender for reserve list plot triggered after minimum bid


By KALPANA RASHIWALA

THE Urban Redevelopment Authority (URA) will put a hotel plot in the Tanjong Pagar area on the reserve list for tender after a successful application from an unnamed developer that has agreed to bid a minimum price of about $94.05 million or $450 per square foot per plot ratio (psf ppr).

The 99-year leasehold plot, at Gopeng Street/Peck Seah Street, was made available for application through the reserve list system in February 2008.

The plot can generate about 330 hotel rooms and 31,215 sq ft gross floor area of commercial space, according to information listed in the second-half 2010 Government Land Sales Programme.

URA will launch the public tender for the site in about two weeks.

The land parcel is a stone's throw from two earlier hotel sites sold by URA in 2007. One plot was sold for $123 million or $573 psf ppr to Carlton group, and the other was sold for $97.07 million or $562 psf ppr to Chng Gim Huat of CGH Group.

Cushman & Wakefield Singapore's managing director Donald Han predicts the top bid for the latest plot could be in the $650-750 psf ppr range (or about $136 million to $157 million in terms of absolute bid prices).

URA in its release noted that the Tanjong Pagar area is home to several hotels which have been established to serve the business community and tourist visitors. These include business hotels like the Amara and M Hotel, as well as award-winning hotels such as Berjaya Hotel and The Scarlet.

'The successful sale and on-going development of several new office, high-rise residential and hotel sites in the area will further enhance the vibrancy and activities of the Tanjong Pagar commercial district,' it added.

Source: http://www.businesstimes.com.sg