Geylang’s K Hotel has been launched for sale at S$25 million asking price. This was announced by JLL the marketing agent for the sale on Thursday, May 02.
The freehold hotel encompasses 3,725 square feet land area and is located on the fringe of the city. It has 12,238 sq ft of estimated GFA (gross floor area) and 3.29 gross plot ratio.
Rising 8-storey high, there are 56 double bedded rooms measuring 12 sqm each. According the 2014 Master Plan of the Urban Redevelopment Authority the hotel falls in an area zoned commercial/institutional and has 2.8 plot ratio.
JLL in its statement has said that considering the zoning, foreigners can buy this property.
In its statement the agent further said that Additional Buyer’s Stamp Duty or the Seller’s Stamp Duty isn’t applicable on this property. Going by the asking price the rate would translate into S$2,050 psf on the floor area or S$450,000 per room in the hotel.
JLL is optimistic about the interest in this property and in its statement, it said that the demand for freehold hotels and such land has been very high over the last year or so.
It cited the cases of hotel land transactions recently where Bras Basah-Bugis Area’s Waterloo Apartments was sold for S$131 million or S$2,172 psf ppr and Rochor’s Golden Wall Centre which fetched S$276.2 million or S$2,331 psf ppr.
K Hotel is located close to Kallang MRT station and mere 10-minutes’ walk from it. Other MRT stations nearby are Mountbatten and Stadium. It is a short drive from the Central Business District and there are several developments nearby that include areas like Kallang Riverside and Sports Hub precinct.
Senior Director for Capital Markets at JLL Singapore, Clemence Lee while interacting with the media said that K Hotel’s owners have a great divesting opportunity as buyers have been looking to invest in hotel land and hotels over the last few years.
It will give the owners a good opportunity to recycle their capital in other investments. According to him, freehold hotels in the sub S$50 million price range rarely hit the market as they are tightly held in Singapore.
He added that there is expectation of strong interest as developers, hotel operators and real estate funds who constantly scout for freehold hotels would be interested in this property.
The location in the city fringe is seeing great amount of growth and recent works going on in Kallang Riverside rejuvenation makes this highly palatable.
K Hotel’s Expression of Interest exercise shall close on June 7 at 3:00 PM.