Cushman & Wakefield and JLL’s Hotels & Hospitality Group have been retained as joint exclusive advisors to Lucrum Capital Pte Ltd to offer for sale a rare freehold hotel development site located in the Orchard Road precinct.
Located along Killiney Road, the site occupies a land area of 13,148 sf with a gross plot ratio of 2.8 and provisional permission has been obtained to rezone the site to “Hotel” use. Subject to final approvals, the proposed hotel would be a 6-storey, 115-room development with a street frontage restaurant on the ground floor. The development would yield a total gross floor area of about 40,000 sf.
The site is strategically located within a short three-minute walk from both Somerset MRT Station and Orchard Road. Well connected to the rest of the island via the Pan Island Expressway (PIE), Central Expressway (CTE) and East Coast Parkway (ECP), Raffles Place and Changi International Airport are just a 9-minute and 23-minute drive away, respectively.
Within close proximity to Orchard Road precinct and the city, the site is in the heart of Singapore’s main tourism belt. With no shortage of trendy F&B and lifestyle offerings, key developments within the site’s vicinity include Orchard Central, orchardgateway, Design Orchard and TripleOne Somerset.
The site will further benefit from government plans to strengthen Orchard Road’s positioning as a lifestyle destination announced earlier this year. The plans include new retail concepts, attractions, entertainment and events to be introduced to the Tanglin, Somerset, Orchard and Dhoby Ghaut sub-precincts. Notably, new elevated link bridges will help provide enhanced connectivity to Killiney Road while new lifestyle options and the possible transformation of the Grange Road open-air carpark into a dedicated events space aims to cement Somerset as a bustling youth hub.
Mr Shaun Poh, Executive Director, Cushman & Wakefield Singapore Capital Markets
, said: “We are seeing a spike of interest from local and overseas investors in hospitality assets, especially in hotel development sites where the owner can exercise flexibility to design a hotel concept that attracts certain profiles of travellers such as millennials. The current design proposal for this hotel development features a contemporary urban lifestyle living space with a nightlife concept.”
Mr Adam Bury, Senior Vice President, JLL Hotels & Hospitality Group
, commented: “Freehold hotel sites in or around Orchard Road are incredibly rare, with no such sites having been transacted since Grand Park Orchard in 2013. As the Singapore hotel market continues to boom, seeing record occupancy levels on the back of sustained visitor arrival growth, we see this as an excellent opportunity to access the Singapore market. Future hotel supply will increase at less than 1% per annum and thus we foresee that trading performance in the market will only increase from its already strong levels”
Over the past 12 to 18 months, interest for hotels and hotel land has risen significantly in Singapore. The most recent government land sale of the Club Street hotel site drew in eight bids and a top bid of $562.2 million ($2,149 psf ppr), a record price for 99-year leasehold land at a state tender. Recent freehold hotel land transactions include Min Yuan Apartments ($141 million), Golden Wall Centre ($276.2 million) and Waterloo Apartments ($131 million). After accounting for development charges, these transactions would equate to nearly $3,000 psf ppr.
The Owner is seeking offers in excess of $155 million for the development site. With the future rezoning of the site to hotel use, foreigners are also eligible to purchase with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed.
The development site is being marketed through an Expression of Interest exercise, which will close on Wednesday, 16 October 2019 at 3pm
For further information, please contact:
Head, Capital Markets
+65 6232 0882
Associate Director, Communications
+65 6317 8349/ 96916449
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com
or follow @CushWake
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with operations in over 80 countries and a global workforce of 88,000 as of September 30, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.