Hotel site at Short Street now available

August 27, 2008
Hotel site at Short Street now available
By ARTHUR SIM

DEVELOPERS interested in a hotel site in Short Street can apply for
it to be put up for tender, after the Urban Redevelopment Authority
(URA) released detailed sale conditions.

The 0.12 hectare site is one of two new hotel plots on the reserve
list under the second-half 2008 Government Land Sales (GLS) programme.

The site, in the Bras Basah/Bugis district, has a maximum permissible
gross floor area of 4,077 sq metres (43,884.4 sq ft) - smaller than
others released this year.

Cushman and Wakefield managing director Donald Han believes it will
attract smaller developers and new entrants to the market.

The owner of neighbouring Albert Court Hotel may feel compelled to
bid, he said.

He reckons that if the site goes up for public tender, bids could
range from $350 to $400 psf per plot ratio (psf ppr) - a quantum of
$15.4-$17.6 million.

Knight Frank director (research and consultancy) Nicholas Mak also
sees bids in this range.

'Based on planning details and the neighbourhood, a boutique hotel
development with an ethnically artistic design is deemed suitable,'
he said.

For instance, a developer could put up a Peranakan-style building
similar to Albert Court Hotel.

Earlier this month, URA received a committed bid of $51 million or
$249.6 psf ppr for a reserve list hotel site at Kallang and Jellicoe
roads.

Also this month, URA awarded a hotel site in Balestier Road to HH
Properties, which put in the highest bid of $172 psf ppr.

There are now nine hotel development sites on the GLS reserve list.

According to URA, the reserve list for H2 2008 provides for potential
supply of 5,050 hotel rooms, including a white site at Outram Road.