Upper Pickering Hotel Site Attracts Record Bid

Source : The Strait Times, Oct 11, 2007

A HOTEL site at Upper Pickering Street has drawn strong interest from developers, with the highest bid being a record one for such a property.
Nine bids had been submitted when the tender closed yesterday.

The top bidder - mainboard-listed Hotel Plaza - put in a price of $253.2 million for the 6,959 sq m site. Given the gross floor area of 29,227 sq m, this works out to about $805 per sq ft per plot ratio (psf ppr).

Hotel Plaza is developer United Overseas Land's hotel arm.

Hotel Plaza's bid was 21 per cent higher than the second-highest bid of $209 million, or $664 psf ppr, placed by Park Plaza.

The record bid is at least 40 per cent higher than the prices paid for two hotel sites on Tanjong Pagar Road that were awarded recently, said CBRE Research's executive director, Mr Li Hiaw Ho.

In June, a hotel site on Tanjong Pagar Road and Gopeng Street was awarded to Carlton Properties for $123 million, or $573 psf ppr.

A month later, the Urban Redevelopment Authority (URA) awarded a hotel plot on Tras Street to businessman Chng Gim Huat of the CGH Group for $97.1 million, or $562 psf ppr.

'The prevailing optimistic mood in the hotel and tourism markets could account for the record-high prices submitted for the Upper Pickering Street site,' said CBRE's Mr Li.

The 99-year leasehold site, launched for sale by the URA on July 18, is located in an ideal spot - at the junction of New Bridge Road and Upper Pickering Street and at the edge of the Central Business District - to cater to business travellers, said Mr Li.

Besides Hotel Plaza and Park Plaza, there were seven other bidders, including Hiap Hoe Superbowl and Ho Bee Investment.

Hotel Plaza currently owns and operates the 350-room Plaza Parkroyal, the adjoining The Plaza and the 337-room Grand Plaza Parkroyal Hotel, among others.

The group also has interests in hotels overseas.

The URA said yesterday that the bids will be evaluated and that the decision on the award will be made later.