State property at Changi on offer

August 12, 2008
State property at Changi on offer
The parcel has a land area of 104,044 sq ft and GFA of 54,864 sq ft
By UMA SHANKARI

HOTEL operators can look forward to another state property to
develop - this time at Changi.

The Singapore Land Authority (SLA) yesterday launched the plot - part
of a former military camp - for public tender.

The tenancy, for an initial three years, is renewable up to 2018. The
guide rental is $28,500 a month.

The parcel has a land area of 104,044 sq ft and a gross floor area
(GFA) of 54,864 sq ft. It comprises two three-storey buildings and a
shed.

'SLA is offering a number of vacant state properties for adaptive re-
use, such as hotels and lifestyle attractions, in line with the
government's vision for Changi Point as a seaview hotel, resort and
recreational destination,' said Teo Cher Hian, SLA's director for
land operations (private).

Since last year, SLA has awarded four state properties in the Changi
area for adaptive commercial re- use. Two are now restaurants, while
the former Changi General Hospital is being turned into a spa resort.

Groundbreaking takes place next month and the resort is expected to
be ready by next year.

The Singapore Tourism Board (STB) says leading hoteliers have
expressed keen interest in the latest property.

According to STB, mid- tier and economy hotels enjoyed average room
occupancy rates of 85 and 87 per cent respectively in the first half
of 2008.

Nicholas Mak, director of research and consultancy at Knight Frank,
said the successful tenderer for the Changi plot will have to come up
with a unique concept.

He said the hotel needs to play on Changi's laid- back character and
is likely to be mid-tier.

The first state property to be converted for hotel use, at Chin Swee
Road, is a boutique establishment with 140 rooms. It officially
opened in mid-May, with an initial occupancy rate of about 50 per
cent.