KUALA LUMPUR: Concorde Hotel & Shopping Centre, owned by Hotel Properties Ltd. (HPL) and other stakeholders and located at 100 Orchard Road in Singapore, is being offered for sale through a public tender.
Savills Singapore, serving as the exclusive marketing agent, has set a guide price of S$820 million, which translates to about S$1,801 per plot ratio (ppr) including balconies.
Over the past three years, Savills has successfully brokered all collective sales along Orchard Road, including Tanglin Shopping Centre (S$868 million/SS$2,769 ppr), Ming Arcade (S$172 million/SS$3,125 ppr), and Delfi Orchard (S$439 million/SS$3,346 ppr).
This valuation for Concorde Hotel & Shopping Centre is based on a proposed development comprising 40 per cent hotel, 40 per cent residential, and 20 per cent commercial use, alongside an additional S$213.1 million to renew the lease for 99 years.
Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore, said that interested buyers can consider submitting an alternative outline planning application for a different usage mix.
He said that although the site is currently zoned for hotel use, it is ideally suited for a mixed-use, integrated development, subject to approval from the Urban Redevelopment Authority (URA).
Concorde Hotel & Shopping Centre is available to foreign buyers with no ownership restrictions. The public tender will close on Oct 16, 2024, at 3:00 PM.
When asked about the current number of bidders, Lake told Business Times that the bids will not be submitted until the tender closes next month.
Meanwhile, he said that the property, which was completed in the mid-1980s, has been a key landmark on Orchard Road for decades, and its redevelopment offers a prime opportunity to contribute to the area's revitalisation.
The property covers a corner island site of about 99,623 square feet, with a zoning height limit of up to 10 stories. It includes a three-storey retail podium with around 108,510 square feet of strata area and a 407-room hotel spanning levels 4 to 9.
Savills also highlighted that the site has a verified development baseline of 539,719 square feet, equating to a plot ratio of 5.41, compared to the Master Plan plot ratio of 5.6.
Additionally, rejuvenation plans for Orchard Road, including the pedestrianisation of the area and the expansion of Istana Park's green spaces directly across from the site, are expected to be completed progressively starting in 2025.