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The freehold hotel site at Cuscaden Road, which was put up for sale earlier in April, has been sold for S$145 million, marketing agent JLL announced in a press release on Monday (23 May).
The sale price was slightly below the region the vendors initially expected which was in the range of S$160 million to S$170 million. The price translates to a land rate of approximately $2,145 per sq ft per plot ratio on the potential gross floor area, after factoring an additional S$87 million that the purchaser would need to pay for development charges for a hotel development.
The tender for the site was awarded Hong Stock Exchange-listed Shun Tak Holding’s subsidiary, Shun Tak Real Estate (Singapore).
According to JLL, this is the first sale of a redevelopment site for hotels to take place in the location in the past decade.
“The site’s excellent location and its attractive redevelopment options were a huge draw. Opportunities to acquire land for hotel development in and around Orchard Road are few and far between,” said JLL international director Karamjit Singh.
The site, zoned for hotel use under the 2014 Master Plan, has a land area of 25,741 sq ft and comes with an allowable gross plot ratio (GPR). The property consultancy also said that the Urban Redevelopment Authority (URA) has advised that it is also prepared to consider a redevelopment proposal for a 20-storey residential development.
“In both proposals, commercial space on the first storey may be allowed. This offers purchasers with two distinct and attractive redevelopment options, subject to design, approval and payment of development charges,” JLL said.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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