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In light of its past property sales, market experts expect Singtel to sell its Hill Street property after it received provisional permission to redevelop the site into a hotel, reported Business Times.
Zoned utility under Urban Redevelopment Authority’s 2014 Master Plan, the site, which features three buildings, is made up of two adjacent rectangular land parcels.
The 25,021 sq ft plot comes with a 999-year lease tenure, while the 14,717 sq ft site with 99-year tenure starting from 1 January 1955, working out to a balance lease term of around 36 years.
“We are exploring options for the Hill Street site which may include the potential sale of the land,” revealed a Singtel spokesperson.
However, property consultants said it is difficult to estimate the property’s price given the various factors to be considered.
“The price for this property will be a sum of various parts and will have to factor in among other things, either a differential premium (DP) or development charge (DC) payable to the state for a change of use,” said a seasoned property consultant.
“In addition, the owner could seek a lease top-up to 99 years for the leasehold plot, from the Singapore Land Authority, which if granted would entail payment of lease upgrading premium.”
The telco has sold various properties in the past, often after securing planning approval for redevelopment to higher use.
Singtel, for instance, sold its former telephone exchange in Jalan Ulu Sembawang in 2005 to Centrepoint Properties (now Frasers Centrepoint) for S$17 million and the former Crosby House in 2006 to a Lehman Brothers-Kajima Overseas Asia partnership for S$163.4 million.
This article was edited by Denise Djong.
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