Friday, November 30, 2012

Victoria St/Ophir Rd hotel site's sales conditions released

SINGAPORE: The Urban Redevelopment Authority (URA) released detailed sales conditions for a hotel site at Victoria Street/Ophir Road on Friday.

With a land area of 0.8 ha, the site is expected to accommodate a hotel development yielding about 32,019 square metres of gross floor area.

According to the URA, the land parcel at Victoria Street/Ophir Road is made available for sale under the Reserve List of the Government Land Sales Programme for the second half of 2012.

This means that the government will release the site for sale if the criteria for triggering the site is met and if it receives sufficient market interest for the site.

When the land parcel is put up for tender, a tender period of about eight to 12 weeks will be allowed before tender closes.

The site is located near the Ophir-Rochor corridor, which is set to be a mix-use cluster with office, hotel, retail, entertainment and residential uses.

The land parcel is also near the historic districts Kampong Glam and Little India, which are popular with locals and tourists.

Knight Frank expects the site to be popular, citing recent bids for hotel sites at record prices.

A hotel site at Jurong Town Hall Road saw a top bid of S$1,167 per square foot per plot ratio (psf ppr), while a Victoria Street/Jalan Sultan site was at S$994 psf ppr.

The consultancy firm expects the Victoria Street/Ophir Road site to receive 5 to 7 bids, with the winning bid to come in at between S$1,000 to S$1,100 psf ppr.

Png Poh Soon, Head of Research at Knight Frank Singapore said: "We envisage that a four-star hotel could be viable for this site, with a development potential of around 550 to 650 hotel rooms together with a retail component.

"Notwithstanding the competition from nearby hotels such as Parkroyal Hotel at Beach Road, Landmark Village Hotel, V Hotel Lavender and the upcoming 5-star hotel at the DUO Towers, demand for hotel rooms at the mid-tier level is likely to remain healthy as visitor arrivals continue to increase."

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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