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A 10-minute walk to the Kallang MRT station, the hotel is also near Mountbatten and Stadium MRT stations and a 10-minute drive to the central business district.
The freehold eight-storey K Hotel in Geylang has been put up for sale via an expression of interest (EOI) exercise, carrying an asking price of $25 million, revealed marketing agent JLL.
This works out to $2,050 per sq ft based on the estimated gross floor area (GFA) of 12,238 sq ft.
Featuring 56 double rooms of 12 sq m each, the property sits on a 3,725 sq ft site zoned commercial/institution under the 2014 Master Plan with a gross plot ratio of 2.8.
A 10-minute walk to the Kallang MRT station, the hotel is also near Mountbatten and Stadium MRT stations and a 10-minute drive to the central business district.
Key developments within the vicinity include the Sports Hub precinct and the Kallang Riverside area.
“The elevated buying interests for hotels and hotel sites in Singapore throughout the past year presents an excellent divesting opportunity for the owner of K Hotel to recycle their capital,” said JLL Singapore capital markets senior director Clemence Lee.
“Freehold hotels with a palatable investment quantum of under $50 million in Singapore are tightly held and very rarely put into the market. We expect strong interest from real estate funds, developers, family offices, and hotel operators who are looking to acquire a freehold hotel located in the city fringe in an area with good growth potential resulting from the nearby Kallang Riverside rejuvenation plans.”
Recent freehold hotel land transactions over the past year include the $276.2 million sale of Golden Wall Centre and the $131 million sale of Waterloo Apartments, while freehold hotel transactions include the $46 million sale of Wangz Hotel and $37 million sale of Wanderlust Hotel.
Since the property is located on land zoned for commercial/institution use, foreigners are allowed to acquire the property with no Seller’s Stamp Duty (SSD) and Additional Buyer’s Stamp Duty (ABSD) payable.
The EOI exercise for K Hotel closes on 7 June.
Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg
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