$44m Bid Triggers Tender For New Bridge Road Site

Source : The Straits Times, June 26, 2009

A HOTEL site on New Bridge Road is up for public tender after an unnamed buyer put in a bid that matched or exceeded the Government's minimum price. This has triggered the tender process.

The site was on a reserve list and goes on sale only when developers indicate a certain level of interest. In this case, an undisclosed developer committed to a bid of at least $43.8 million.

The Urban Redevelopment Authority (URA) said yesterday that it will launch the tender for the 99-year leasehold site in about two weeks and the launch date will be announced later.

The land parcel has a site area of about 0.45ha and can generate a maximum permissible gross floor area of 15,687 sq m and is ideal for a boutique hotel, said the URA.

This site is in Chinatown and suitable for a three- or four-star hotel.

A recent survey conducted by the Asian Real Estate Association showed that the hotel sector was the least preferred segment this year compared with land for residential, retail, office and industrial uses.

But there will still be keen investors given the improved sentiment, said a property expert.

He said that some hotel investors may believe that the worst is behind them and that the market will improve by the time the project is completed.

They could also be banking on the integrated resorts to bring more tourists to Singapore, he added.

Industry watchers said the triggering bid for the New Bridge Road site is also another sign of increased optimism about the economy.

Earlier this month, a small Short Street hotel site received 15 bids with the winning tender offering 76 per cent above the trigger price.