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A site owned by Singapore Telecommunications that can be redeveloped into a hotel has been launched for sale via public tender by the seller’s exclusive advisor, CBRE.
The property in 15-33 Hill Street consists of two adjacent land parcels — lots 9K and 99P of TS 10 – with a total land area of about 39,738 sq ft. Given its plot ratio of 3.5, it has a maximum allowable gross floor area (GFA) of around 139,084 sq ft.
Situated in the heart of the Civic and Cultural District, the plot is close to many famous historical landmarks like St. Andrew’s Cathedral and Singapore’s National Museum.
It is also within proximity to shopping malls like Capitol Piazza and Raffles City. Aside from being near entertainment venues such as Clarke Quay and Marina Bay Sands, it is also a stone’s throw away from upscale hotels like The Patina, Capitol Singapore and the Grand Park City Hall.
Based on the 2014 Masterplan, the site is currently zoned for utility, but the government has granted provisional permission to redevelop it into a hotel.
The Business Times reported that while CBRE has not stated an asking price, word on the market is that it could fetch approximately $100 million. This translates to almost $1,700 psf per plot ratio (ppr), including a $108 million charge to change its use from utility to hospitality.
“Hotel development sites in the Central Area are rarely available. The last hotel site that was sold was along Cuscaden Road. The sale in 2016 achieved a land price of $2,145 psf ppr,” said CBRE Director for Capital Markets Galven Tan.
Furthermore, the buyer needs to pay an additional $27 million to top up the site’s remaining lease to a full 99 years.
Tan also noted that such sites rarely become available. “As part of the government’s strategy to avoid oversaturation in the market, new hotel supply had been limited for the last few years.”
The public tender for the hotel redevelopment site will close on 13 December 2017.
This article was edited by Keshia Faculin.
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