East Coast Rd hotel site up for sale by public tender

East Coast Rd hotel site up for sale by public tender

The Urban Redevelopment Authority (URA) has launched a hotel site at East Coast Road for sale by public tender.

SINGAPORE: The Urban Redevelopment Authority (URA) has launched a hotel site at East Coast Road for sale by public tender.

The site, which is on the government's reserve list, was triggered for sale on November 6 after a developer had committed to bid at a price of not less than S$160 million for the site.

Under the Reserve List system, a site will only be put up for tender if the developer's minimum bid price is acceptable to the government.

With a gross floor area of about 24,716 square metres, the land parcel is located at the junction of East Coast Road and Joo Chiat Road.

The 99-year leasehold plot also contains the former Joo Chiat Police Station, which shall be restored as part of the future hotel development.

Nicholas Mak, executive director of SLP International Property Consultants, said the site is near Paya Lebar, which is expected to be developed into a commercial hub under the the new Draft Master Plan 2013. This could drive demand for hotel rooms in the area.

But developers will have to retain and restore the two-storey former Joo Chiat Police Station and the gross floor area of that conserved building has to be included as part of the maximum permissible gross floor area.

The government has also stipulated that up to 40 per cent of the maximum permissible gross floor area will be allowed for commercial use such as office and retail space.

Another challenge facing the developer of this hotel is that as the hotel could yield 600 rooms, it would have to provide sufficient parking space.

SLP International expects the site to draw five to 10 bids, which could range from S$250 million to S$266 million.

- CNA/xq/ms

- wong chee tat :)