URA releases hotel site at Havelock Road

The government has released a hotel site at Havelock Road for application from interested developers.

In a statement, the Urban Redevelopment Authority (URA) said it has released the detailed sales conditions for the land parcel, which consists of three conserved warehouse buildings fronting the Singapore River.

The plot is on the Reserve List for the first half 2013 Government Land Sales (GLS) Programme.

URA expects the conserved buildings to be developed into a boutique hotel.

Unlike the usual hotel land parcels, the plot has a land tenure of 60 years, compared to the usual 99 years.

With a land area of about 1,536.2 square metres, the hotel site can generate a maximum permissible gross floor area of 2,145 sqm, said URA.

Nicholas Mak, executive director of SLP International Property, said the site could attract top bids ranging from S$18.5 million to S$20 million if it is launched for sale on Thursday.

As the total investment amount is not excessive, he expects several small hotel developers and operators to put in their bids.

But he warned that the warehouse buildings would not offer much economies of scale, given that only about 35 hotel rooms in total could be developed.

Source – URA – 28 Jun 2013

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