Dec 01, 2012
By Cheryl Lim
A hotel development site with the potential to boast a new hotel of up to 20 storeys is on sale in the fast-emerging Ophir-Rochor area.
The 0.8ha 99-year leasehold site - formerly the Victoria Street Wholesale Centre - has been released under the Government Land Sale Programme's Reserve List. This means that an interested buyer will have to commit to bidding a minimum sum acceptable to the Government before it is released for tender.
The site can potentially be built up to a maximum gross floor area of 344,653 sq ft and house a development of up to 20 storeys.
The land parcel is at the junction of Victoria Street and Ophir Road, near the Ophir-Rochor Corridor, a new growth area set to become an exciting cluster of offices, hotels, retail, entertainment and residential projects.
Mr Png Poh Soon, head of research at Knight Frank Singapore, predicts that a four-star hotel property could be a viable option.
He anticipates a development potential for a hotel of up to 650 rooms with a retail component.
The Rochor Road area has seen a flurry of activity in recent months. Earlier last month, Khazanah Nasional and Temasek Holdings unveiled details of their development project in Bugis. Called Duo, the project will comprise two towers of residential, retail, hotel and Grade A office space.
In October, Forward Land submitted a $331.34 million bid - which translates to $994 per sq ft per plot ratio (psf ppr) - for a neighbouring site in Victoria Street. The developer had announced it plans to allocate 60 per cent of the project's maximum gross floor area to hotel use, with the rest to be dedicated to commercial use.
"Notwithstanding the competition from nearby hotels such as Parkroyal Hotel in Beach Road, Landmark Village Hotel... demand for hotel rooms at the mid-tier level is likely to remain healthy as visitor arrivals continue to increase," said Mr Png. If the site is triggered for tender, Mr Png expects the plot will attract between five and seven bids, with the winning bid of $1,000 to $1,100 psf ppr.
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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