Cuscaden Rd hotel site sold to Shun Tak for S$145 million

SINGAPORE – A prime freehold hotel site along Cuscaden Road has been sold for S$145 million to Shun Tak Real Estate (Singapore), a wholly-owned subsidiary of Hong Kong-listed Shun Tak Holdings, whose business activities include property development, investment and management, hospitality and transportation.

Mr Karamjit Singh, the international director at JLL which brokered the sale via a public tender on behalf of the trustees of the estate of the late owner, said on Monday (May 23): “We had received strong interest from both local and foreign hotel owners and residential developers. The site’s excellent location and its attractive redevelopment options were a huge draw.”

“Opportunities to acquire land for hotel development in and around Orchard Road are few and far between. Based on our records, this is the first sale of a redevelopment site for hotels to take place in this location in more than 10 years,” he added.

The property has a land area of 25,741 sq ft and is zoned for hotel development in the 2014 Master Plan, with an allowable gross plot ratio of 4.2. The Urban Redevelopment Authority (URA) has advised that it is prepared to consider a redevelopment proposal into a residential project, subject to approval and the payment of development charges, JLL said.

The sale price of S$145 million translates to about S$2,145 psf per plot ratio on the potential gross floor area, after factoring an additional S$87 million that the purchaser would need to pay for development charges for a hotel project, JLL added.