Killiney Road freehold hotel site on sale for at least $155m

The freehold hotel site (outlined in red) is located near Orchard Road and is expected to benefit from the area's development. PHOTO: CUSHMAN & WAKEFIELD
The freehold hotel site (outlined in red) is located near Orchard Road and is expected to benefit from the area's development. PHOTO: CUSHMAN & WAKEFIELD

A Killiney Road freehold hotel development site is up for sale, with the owner seeking at least $155 million.

The plot in the Orchard Road area has a land area of 13,148 square feet with a gross plot ratio of 2.8, and provisional permission to be rezoned for hotel use.

Foreigners are eligible to buy the site with no additional buyer's or seller's stamp duty imposed.

A hotel could be six storeys with around 115 rooms and a street frontage restaurant, said Cushman & Wakefield and JLL's Hotels & Hospitality Group, the joint advisers for the sale.

The development would yield a total gross floor area of about 40,000 sq ft.

The site, which is owned by private equity firm Lucrum Capital, is a three-minute walk from Somerset MRT station and Orchard Road, with plenty of food and beverage and lifestyle offerings nearby, including Orchard Central and TripleOne Somerset.

It will also benefit from government plans for Orchard Road, which include new retail concepts, attractions and events.

The sale exercise closes at 3pm on Oct 16.

Interest in hotels and hotel land has risen significantly over the past year or so, said the joint advisers.

The most recent government land sale of a Club Street hotel site drew eight bids and a top offer of $562.2 million, a record price for 99-year leasehold land at a state tender.

Recent freehold hotel land transactions include Min Yuan Apartments for $141 million, Golden Wall Centre at $276.2 million and the $131 million Waterloo Apartments.

A Mount Elizabeth Link serviced apartment block was put up for sale on Monday at a $230 million indicative price.

Mr Shaun Poh, executive director of capital markets at Cushman & Wakefield Singapore, said: "We are seeing a spike in interest from local and overseas investors in hospitality assets."

Mr Adam Bury, senior vice-president of investment sales at JLL Hotels & Hospitality Group, noted that no freehold hotel sites in or around Orchard Road have been sold since Grand Park Orchard in 2013.

A version of this article appeared in the print edition of The Straits Times on September 11, 2019, with the headline 'Killiney Road freehold hotel site on sale for at least $155m'. Print Edition | Subscribe