A developer has placed a bid of $148.7 mil for a 0.84ha hotel site at the junction of Jalan Sultan and Victoria Street which is near to Lavender MRT station. This is equivalent to $446 psf ppr.
Analysts mentioned that this site earmarked for hotel development was triggered for sale due to the booming tourism sector.
In Feb 2012, a Rangoon Road hotel site was triggered for sale which was sold for $151 million in Apr 2012.
Some analysts expect the winning bid for this site to be in the range from $650 psf ppr to $700 psf ppr which will be from $217 million to $233 million from about 6 bidders. This winning bid figure is based on a three-star hotel with about 500 rooms to be built on this site.
One of the selling point for this site is that a portion of the site that faces Rochor River is zoned for outdoor recreation use which will allow the developer to build an alfresco dining area.
Furthermore, this site is zoned for either hotel or commercial and residential use. However, the final configuration requires a hotel component which will allow the developer room for creativity in the product offering.
If the developer decides to built mainly for hotel uses, then at least 60% of total gross floor area must be for hotel rooms and hotel-related uses. The balance space can be for commercial and/or residential uses.
If the developer decides to built mainly for commercial and residential uses, then at least 60% must be for residential use while a maximum of 10% can be for commercial use with a minimum 30% of the GFA to be kept for hotel use.
7 Aug 2012