Wednesday, August 27, 2008

Hotel Site At Short Street Now Available

Source : The Business Times, August 27, 2008

DEVELOPERS interested in a hotel site in Short Street can apply for it to be put up for tender, after the Urban Redevelopment Authority (URA) released detailed sale conditions.

The 0.12 hectare site is one of two new hotel plots on the reserve list under the second-half 2008 Government Land Sales (GLS) programme.

The site, in the Bras Basah/Bugis district, has a maximum permissible gross floor area of 4,077 sq metres (43,884.4 sq ft) - smaller than others released this year.

Cushman and Wakefield managing director Donald Han believes it will attract smaller developers and new entrants to the market.

The owner of neighbouring Albert Court Hotel may feel compelled to bid, he said.

He reckons that if the site goes up for public tender, bids could range from $350 to $400 psf per plot ratio (psf ppr) - a quantum of $15.4-$17.6 million.

Knight Frank director (research and consultancy) Nicholas Mak also sees bids in this range.

'Based on planning details and the neighbourhood, a boutique hotel development with an ethnically artistic design is deemed suitable,' he said.

For instance, a developer could put up a Peranakan-style building similar to Albert Court Hotel.

Earlier this month, URA received a committed bid of $51 million or $249.6 psf ppr for a reserve list hotel site at Kallang and Jellicoe roads.

Also this month, URA awarded a hotel site in Balestier Road to HH Properties, which put in the highest bid of $172 psf ppr.

There are now nine hotel development sites on the GLS reserve list.

According to URA, the reserve list for H2 2008 provides for potential supply of 5,050 hotel rooms, including a white site at Outram Road.

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