Tuesday, August 12, 2008

State Property At Changi On Offer

Source : The Business Times, August 12, 2008

The parcel has a land area of 104,044 sq ft and GFA of 54,864 sq ft

HOTEL operators can look forward to another state property to develop - this time at Changi.

The Singapore Land Authority (SLA) yesterday launched the plot - part of a former military camp - for public tender.

The tenancy, for an initial three years, is renewable up to 2018. The guide rental is $28,500 a month.

The parcel has a land area of 104,044 sq ft and a gross floor area (GFA) of 54,864 sq ft. It comprises two three-storey buildings and a shed.

'SLA is offering a number of vacant state properties for adaptive re- use, such as hotels and lifestyle attractions, in line with the government's vision for Changi Point as a seaview hotel, resort and recreational destination,' said Teo Cher Hian, SLA's director for land operations (private).

Since last year, SLA has awarded four state properties in the Changi area for adaptive commercial re- use. Two are now restaurants, while the former Changi General Hospital is being turned into a spa resort.

Groundbreaking takes place next month and the resort is expected to be ready by next year.

The Singapore Tourism Board (STB) says leading hoteliers have expressed keen interest in the latest property.

According to STB, mid- tier and economy hotels enjoyed average room occupancy rates of 85 and 87 per cent respectively in the first half of 2008.

Nicholas Mak, director of research and consultancy at Knight Frank, said the successful tenderer for the Changi plot will have to come up with a unique concept.

He said the hotel needs to play on Changi's laid- back character and is likely to be mid-tier.

The first state property to be converted for hotel use, at Chin Swee Road, is a boutique establishment with 140 rooms. It officially opened in mid-May, with an initial occupancy rate of about 50 per cent.

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