Tuan Sing may turn Link@896 and adjoining site at Bukit Timah into hotel or serviced residence
Sign up now: Get ST's newsletters delivered to your inbox
Link@896 sits on a 13,089 sq m plot of land, the largest plot of commercial land along Bukit Timah Road, according to Tuan Sing.
PHOTO: TUAN SING HOLDINGS
Jessie Lim
Follow topic:
SINGAPORE – Property developer Tuan Sing Holdings plans to turn its headquarters at The Oxley into a hotel or serviced residence, in a bold move into the hospitality sector in Singapore.
It is also considering turning its key asset Link@896 in Bukit Timah and the freehold site next to it into a hotel or serviced residence.
Evaluation for this proposal is ongoing, subject to approval by the relevant authorities, Tuan Sing said in a corporate update on Friday.
The company said both properties present “potential value-creation opportunities”, with asset enhancement set to bring in incremental recurring income.
Currently, Tuan Sing has two hospitality assets in its portfolio – the Grand Hyatt Melbourne and Hyatt Regency Perth in Australia. Both are five-star hotels.
In Singapore, Tuan Sing is more well known as a property developer, with its most recent project Peak Residence fully sold and set to complete by 2024.
In 2021, the mainboard-listed company secured a private tender for the 1,592.4 sq m freehold site in 870 Dunearn Road for $56 million. It is next to the five-storey Link@896, which sits on a 13,089 sq m plot of land, the largest plot of commercial land in Bukit Timah Road, according to Tuan Sing.
In an interview with The Business Times in 2021, Tuan Sing group chief executive William Liem said he saw a lot of potential for the new property, although plans for it had yet to be finalised.
Link@896 is connected to King Albert Park MRT station and is known for its iconic Cold Storage supermarket.
The average occupancy was 95 per cent in the first half of 2023, and Link@896 has a valuation of $390 million as at June 5.
Meanwhile, The Oxley, where Tuan Sing is headquartered, is a freehold 10-storey building in Oxley Rise in District 9.
Under the Urban Redevelopment Authority Master Plan 2019, it is zoned mixed commercial and residential, with a gross plot ratio of 4.2.
For the first half of 2023, Tuan Sing posted a 38.1 per cent fall in net profit to $6 million, compared with $9.7 million in the same period a year ago.
Mr William Liem, group chief executive of Tuan Sing, said he saw a lot of potential for the new property, although plans for it had yet to be finalised.
ST PHOTO: MARK CHEONG
Revenue, however, climbed 27 per cent to $144.7 million. The company attributed this to higher revenue from its real estate development, hospitality and real estate investment segments.
On Friday, Tuan Sing said: “The group is closely monitoring the residential market, with cautious outlook over the higher interest rate and inflation environment.”
“The group’s commercial properties, 18 Robinson and Link@896, continue to enjoy improving occupancies and contribute to recurring income for the group.”
The company added that Link@896 has also begun planning for an asset enhancement initiative, which is expected to elevate the retail experience by improving the layout and tenant mix, with new amenities for shoppers.
Shares of Tuan Sing closed flat at 28.5 cents on Monday. THE BUSINESS TIMES
