Tuesday, November 07, 2006
[RealEdge] BT : Sinaran Drive hotel site receives $92m bid
| Published November 7, 2006  | |
| Sinaran Drive hotel site receives $92m bid
By ARTHUR SIM
THE hotel industry has received another confidence boost with the latest $92 million offer by an unnamed developer for a hotel site at Sinaran Drive, near Novena MRT station. Under the government land sales' reserve list system, the Sinaran Drive site will now be put up for public tender within two weeks. This is the fourth hotel site to be triggered for sale from the reserve list this year. The first three sites were at Clemenceau Avenue/Unity Street, Mohamed Sultan Road/Nanson Road and Bencoolen Street. The site at Clemenceau Avenue/Unity Street was sold in August to Park Hotel Group for $55.5 million, more than double the trigger price of $25 million. At $466 psf per plot ratio (ppr), it was also 55 per cent higher than the $300 psf ppr fetched for a Bras Basah Road hotel plot next to Carlton Hotel in January 2005. At $92 million, the Sinaran Drive site, which has a maximum gross floor area of 24,313 sq m - more than twice that of the Clemenceau Avenue/Unity Street site - would cost about $350 psf ppr. Actual bids during the public tender process are generally considerably higher than the trigger price. But Nicholas Mak, director of research and consultancy at Knight Frank, believes the trigger price is already high, about double an earlier forecast price. Mr Mak believes the bid could have been put in by a foreign developer. 'Usually, local bidders will bid at a lower price,' he said. He added that he did not think the Urban Redevelopment Authority would have revised its price expectation for the site despite the renewed interest in hotel sites. 'Hotel rates did not go up much in the last six months,' he noted. |
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch format to Traditional
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe
__,_._,___
