Hoe Chiang Road hospitality site in CBD up for sale with $715m guide price

The freehold 39,337 square foot site has been approved for hospitality use. PHOTO: CBRE PTE. LTD

SINGAPORE (THE BUSINESS TIMES) - A prime development site at 15 Hoe Chiang Road will be put up for sale with a guide price of S$715 million via expression of interest on Wednesday (July 22), exclusive marketing agent JLL said on Tuesday.

The freehold 39,337 square foot (sq ft) site has been approved for hospitality use with a gross floor area (GFA) of about 248,483 sq ft, or an equivalent gross plot ratio (GPR) of above 6.31 based on written permission issued in November last year.

Provisional permission was granted early this year, which allows for an additional 25 per cent of GFA approved for proposed use on the site with ancillary facilities and car parks of up to 37 storeys.

This effectively increases the GFA to about 310,604 sq ft or an equivalent GPR of 7.896 under the Central Business District (CBD) Incentive Scheme, JLL said.

Currently, the development site has non-residential zoning, which means there is no additional buyer's stamp duty payable and no foreign ownership restrictions. The building which sits on the site - Tower Fifteen - has since been decommissioned, according to JLL.

Buyers of the site will be able to capitalise on the additional GPR accorded under the CBD Incentive Scheme for the Anson area, JLL said.

15 Hoe Chiang Road was previously put up for sale in 2015 via expression of interest but did not change hands, The Business Times understands.

The 2015 expression of interest exercise took place before the launch of the CBD Incentive Scheme in March 2019. The scheme was created to encourage the conversion of existing office developments to hotel and residential uses, and applies to the Anson Road, Cecil Street, Shenton Way, Robinson Road and Tanjong Pagar areas.

Subject to planning approval, developers and investors will have several options of converting the plans under the incentive scheme.

These include an option of "residential and commercial" with at least 60 per cent residential GFA or a full hotel with 25 per cent additional GPR. There is an option of "residential with commercial at the first storey" with an additional 30 per cent GPR.

15 Hoe Chiang Road is bounded on three sides by Hoe Chiang Road, Lim Teck Kim Road and Cantonment Road to the south of the CBD and is across from the Tanjong Pagar Terminal container port.

It is in the centre of many established Grade A offices occupied by multinational and international corporations, hotel establishments and food and beverage offerings along Shenton Way, Anson Road, Tanjong Pagar Road, Cantonment Road and heritage clusters of conservation shophouses.

High-end residential developments such as Wallich Residence, Altez, V on Shenton, Icon and Skysuites @ Anson are near the development site.

The development site is about 500 metres from Tanjong Pagar MRT Station and 650 metres from Outram Park Interchange. The site is also near the upcoming Cantonment MRT Station and Prince Edward MRT station, both slated to complete in 2025.

Tan Hong Boon, JLL executive director of capital markets, said: "Given its highly coveted freehold tenure, prominent corner location and allowable height, 15 Hoe Chiang Road presents developers and investors with a rare opportunity to own a flagship building with excellent visibility and naming rights for their commercial or hospitality uses."

Developer and investors can develop a mixed-use project with Grade A offices cum luxury residential units exploiting the prized scenic views. These scenic views are sought after by well-heeled international residential investors who are prepared to pay good premiums for their sky abodes on the highest floors in the city, Mr Tan said.

Upon redevelopment with a new tower, 15 Hoe Chiang Road will provide future occupants panoramic sea views towards Sentosa and the Southern Islands in the context of the upcoming Greater Southern Waterfront master plan, JLL said.

The latest expression of interest exercise will close on Sept 11, 2.30pm.

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