The Urban Redevelopment Authority (URA) announced that the public tender for a hotel site at the junction of Gopeng Street and Peck Seah Street has received a total of seven bids, with Golden Development Private Limited offering the highest bid of S$194.77 million.
Li Hiaw Ho, executive director at CB Richard Ellis (CBRE) Research, said the tender for the site reflects a “positive business sentiment for the tourism and hospitality sector.”
The second highest bid came from Imperial Development, offering S$189 million. A joint bid offered by Taipan Trustee and Taipan Property Holdings (Singapore) was the third highest at S$188.88 million, followed by a joint bid from Novel Developments and New Vista Realty at S$173 million. The lowest was a joint bid from Fairvalue 128 and Hotel Star Investments at S$135.84 million.
The hotel site has a total area of 2,311.40 sq m and a maximum permissible gross floor area (GFA) of 19,416 sq m.
“The 99-year leasehold site has a maximum gross floor area of 19,416 sq m, which can yield some 330 rooms. The land parcel is well-located in Tanjong Pagar area and the Tanjong Pagar MRT station is a short walk away,” said Mr. Li.
“Two hotels are expected to be built near the subject site. The 272-room Orchid Hotel will be completed later in the year. The developer paid S$97.1 million (S$562 psf/plot ratio) for the site in July 2007. The second nearby hotel was awarded to Carlton Properties in June 2007 for S$123.0 million (S$573 psf/plot ratio).”
The URA said it will still evaluate the tender result and a decision on the award will be made at a later date.