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The 308-room BIG Hotel has been put up for sale by Expression of Interest (EOI), exclusive marketing agent JLL announced Wednesday (17 September).
The freehold hotel, which first opened in May last year following an extensive renovation of the former Prime Centre commercial building, will be on sale and leaseback basis.
Located at the junction of Middle Road and Bencoolen Street, the 16-storey BIG Hotel features facilities that include multi-storey car park, three retail/F&B outlets and a gymnasium. The hotel has also achieved occupancy levels of 90 percent since its opening.
According to JLL, BIG Hotel is being sold with the existing operator in place to manage the hotel under the BIG Hotel brand. “The hotel is being sold on a leaseback structure, with a fixed guaranteed income being paid to the new buyer of the hotel.” The firm also noted that the leaseback period is flexible and dependent on the buyer’s requirements, with a minimum term of three years.
As it is considered a rare opportunity to acquire a freehold asset within the CBD, Anthony Barr, Regional Director of Investments at JLL Singapore, said: “We expect the offering to be extremely well-received by both hotel investors and buyers outside of this asset class.”
He added: “The central location of BIG Hotel, which adds to its attractiveness, will realise its full potential once both the Rocher and Bencoolen MRT stations are up and running in 2016 and 2017 respectively. The area already has a vibrant feel due to the surrounding arts and education precinct, and new developments in the area will further add to its appeal as a destination for hotel users.”
The EOI exercise for BIG Hotel will close on 28 October.
Back in July last year, the hotel was put up for sale with an expected price of S$260 million through an EOI exercise handled by Colliers International. No sale materialised from the said exercise which closed 14 days later.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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