OVERSEA-CHINESE Banking Corporation is planning to sell serviced-residence development @ 2 Mount Elizabeth Link.
The District 9 freehold-property which houses 72 serviced apartments is currently leased to Frasers Hospitality the operator of Fraser Residence Singapore.
Cushman & Wakefield has been hired as the exclusive marketing agent by OCBC to find a suitable buyer for the property.
Shaun Poh, Executive Director of Capital Markets at Cushman & Wakefield confirmed this development while speaking to the media but refused to disclose further details about the sale. OCBC has on its part declined to comment on this development.
The gross floor area of the property is estimated to be about 104,400 sq ft which is roughly 2.95 times the 35,385 sq ft land over which the property currently sits.
Interestingly as per the 2014 Master Plan and the Draft Master Plan for 2019 the plot ratio for this area which is classified as a residential zone is 2.8.
HVS the American advisory firm that specialises in hospitality assets has estimated the price for this property. President of HVS for the Asia-Pacific Chee Hok Yean, estimates the property to be worth around $2,500 psf with respect to its approved GFA.
This price is inclusive of the development changes that are payable and based upon the fact that the developer would get approval to rezone the side to convert it into a hotel. This translates to a price of around S$261 million which includes development charges.
The freehold property is located on the junction of Cairnhill Road and Mount Elizabeth Link and just a few meters from the Mount Elizabeth Hospital.
As per reports OCBC had completely the development work on this property around 20 years back. The property has undergone several name changes and used to be known as The Compass at Elizabeth before changing its name to Somerset Compass when The Ascott Limited took control over the property.
Frasers Hospitality entered into a lease agreement with OCBC in January 2011 and renamed the property to Fraser Residence Singapore.
The hospitality group is said to have spent around S$6.5 million for remodelling the property during its seven-year lease agreement.
Upon expiry of the lease agreement it was further renewed for another two years and is valid till January 2020.
Interestingly Frasers Hospitality opened a new property earlier this month which is located at 31 Paterson Road and named Fraser Residence Orchard.
Frasers Hospitality is the hospitality arm of Frasers Property which was earlier known as Frasers Centrepoint Ltd a listed entity.
Fraser Residence Orchard has 115 serviced apartments and located close to Thomson-East Coast Line’s under development Orchard Station.