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The tender for the 7,260 sq m site, which was zoned commercial under the 2019 Draft Master Plan, was supposed to end on 24 June, but has now been extended to 22 July.
The closing date for the collective sale tender of Sim Lim Square has been extended to 22 July to provide prospective bidders more time to explore the possibility of transforming the site into a hotel, reported CNA citing SLP International – the property’s marketing agent.
SLP project lead Francis Tan revealed that over the last few weeks interested parties have made contact, “exploring the possibility of converting the entire space into (a) mixed-use development or hotel”.
This comes as various developments along the same stretch at Rochor Canal Road, where Sim Lim Square is located, have been zoned hotel.
“They need more time as it’s a complex exercise that requires multiple parties,” said Tan.
The tender for the 7,260 sq m site, which was zoned commercial under the 2019 Draft Master Plan, was supposed to end on 24 June.
To convert the site, developers are required to submit applications to the URA, the processing of which usually takes around 20 working days.
Meanwhile, analysts believe the effort required to convert the site could be worth it since a mixed-use development within the area would be more strategic.
“If it’s commercially zoned, you can only either do retail or have an office. Some developers might shun offices, because the Sim Lim Square area is not the traditional office market,” shared CBRE research head Desmond Sim.
He noted that dedicating the entire site to retail may lead to difficulty in achieving full occupancy given the challenging retail environment. Having a mixed-use development, on the other hand, would allow the plot to be better utilised.
“They are not confined to office hours or retail opening hours,” said Sim.
“So with mixed-use – if you’ve got hospitality, you’ve got retail – the use of the actual site is actually more diverse and can be better used across a 24-hour timeline.”
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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