Club Street Hotel Site Tender Won by Worldwide Hotels

Club Street Hotel Site Tender Won by Worldwide Hotels

The Worldwide Hotels has acquired an exclusive hotel site at S$562 million in a Government Land Sales Tender.

The bid price has set the record of being highest for a 99-year leasehold land along Club Street in the Central Business District.

Through its subsidiary Midtown Development, Worldwide Hotels has offered the highest bid among the eight competitors, which translates to S$2,148.50 psf ppr.

Though dissatisfied with the smaller number of participants in the tender, the market was quick to recognize the confidence, the owner operators place on the growing Tourism and Hospitality Industry.

In November 2018, the Worldwide Hotels acquired Golden Wall Centre through its subsidiary City View Holdings, again bidding a higher price at S$276.2 million against the asking price of S$260 million.

The group has been marking their presence as a leading tourist class hotel through their six hotel brands namely Hotel Boss, V Hotel, Hotel Mi, Value Hotel, Venue Hotel and Hotel 81.

With 38 such operations nationwide, the group is all set to spread their success story at the Club Street, CBD through this ambitious acquisition.

Ms. Carolyn Choo, Managing Director of the Group is quite elated about the acquisition and unfolded their vision to develop a four-star hotel with extensive amenities estimating an investment of about S$700 million.

They propose to include the F&B and retail component to offer a memorable stay to the end-users.

JLL’s Sr Vice President – Strategic Advisory & Asset Management (Hotel & Hospitality) Mr. Giuliano Esposito expressed his satisfaction over the acquisition.

He is confident that the premium paid over the asking rate largely surpasses the advantage of the hotel site. As CBD is deprived of such strategic hotel sites, it is quite sagacious to bid 12.4% higher than the next offer.

The offer by a partnership venture between UOL Group and United Industrial Corporation became the second highest bid while the Shangri-La Group stood third.

GLS – HOUSING SITE TENDER

Private Housing Site in Kampong Java Road

The highest bid for Kampong Java Road private housing site was from CELH Development of Chip Eng Seng Group at S$418.38 million, which translates to psf ppr at S$578.12.

The Chief Executive of the Group, Raymond Chia envisions developing a wide size range of one to four bedder condos of about 380 units in total.

Amid speculations of an oversupply, the Kampong Java Road acquisition displays both confidence and cautiousness in the private residential market.

Though the pricing did not match the market expectations, the confidence in exploiting the private residence potential clearly surpasses market presumptions.

Located close to Newton MRT Station, the next highest bidder of the 99-year leasehold Kampong Java Road was GuocoLand among the total seven bids.

Executive Condominium Site in Tampines Avenue

With limited supply, Executive Condominium sites like Tampines Avenue high in demand, which is evident by the winning bid of S$ 434.45 million, which translates to psf ppr at S$578.12, well in line with market expectations.

Among the seven bids, the winning bid was submitted by the joint venture of Hoi Hup Realty and Sunway Developments for this 99-year leasehold EC site.

It surpassed the next bidder MCC Land, Singapore, which offered S$431.62 million, which translates to S$574.36 psf ppr.

Expert Opinion On GLS

Drawing valuable inputs from the GLS, Head of Research at Colliers International, Ms. Tricia Song highlights the growing investments in the profitable hospitality industry strongly displayed through the Worldwide Hotels acquisition.

Ms. Song also appreciates the evergreen appeal for Executive Condominium sought after by families and believes that the minimum average unit size of 85 sqm matches their requirement.

Ms. Song also reports that the winning bid of Tampines Avenue at psf ppr S$578 remains a top bid next only to the March 2018 transaction of Sumang Walk at S$583 psf ppr.

This is viewed as an indication that the cooling measures have not dampened the EC Market.

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