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Singapore’s Kwee brothers and Far East Organization are reportedly the two final parties shortlisted to buy the historic sandstone buildings in Sydney’s Central Business District (CBD).
The sandstone-clad edifices at Circular Quay dates back to the 1890s and one of them was formerly occupied by the Department of Lands. They will be offered to the winning bidder on a 99-year lease by the state of New South Wales (NSW).
According to media reports, the authorities may also allow the winning party to construct 300 hotel rooms and serviced apartments on top of the Department of Education building in line with its transformation into a five-star hotel.
The overall cost of the project is estimated to reach more than AU$250 million, including the redevelopment cost of converting the Department of Lands Building into a six-star hotel. This amount doesn’t even take into account the leasing fee for the prime site.
The winning party will be announced in the middle of 2015 after the end of the bidding process managed by Macquarie Capital.
Based on market talk, Kwee brothers’ Pontiac Land Group and Far East Organization have spent hundreds of thousands of dollars to conduct the diligence process for the properties.
If Far East Organization wins the bid, it may likely use the site for its prestigious Fullerton hotel brand, while it could become another priced property under the belt of the four Kwee brothers who are touted as Singapore’s fifth-richest family. Their company, Pontiac Land Group, currently operates four high-end hotels in Singapore, including the Ritz-Carlton and the Regent.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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