A plum hotel site in Havelock Road has beaten market expectations by attracting a top bid of $30.1 million, in a fiercely-fought tender involving nine developers.
The bid submitted by a company currently owned by Cheong Keng Hooi, a member of the family that developed International Plaza in Tanjong Pagar, works out to $1,303 per sq ft (psf) per plot ratio (ppr).
This exceeded experts' expectations of a top bid ranging from $920 to $980 psf ppr, when the site was put up for sale under the Government's reserve list system in September.
An unnamed developer had offered $18 million - or $780 psf ppr - for the site in that month.
Reserve list sites are put to tender only if a developer first commits to buy it for a sum acceptable to the Government.
The 16,535.5 sq ft land parcel comprises three warehouse buildings, and can yield a hotel with 35 rooms. It has a lease of 60 years and a maximum permissible gross floor area of 23,088.6 sq ft.
The top bid was 7 per cent higher than the $28.1 million, or $1,217 psf ppr, submitted by a private individual, Mr Ooi Teck Hin.
Laguna National Gold and Country Club owner Peter Kwee submitted the third-highest bid of $26.3 million, or $1,138 psf ppr.