Wangz Hotel which has attracted people for its unique aluminium-clad barrel-shaped architecture shall change hands for S$46 million.
The building is located at a corner of Tiong Bahru and Outram roads. Going by the price the rate for the hotel would work out S$1.12 million for each room in the 41-room property.
The boutique hotel with its six-storey was opened in 2009 and sits on a freehold site.
The hotel is currently owned by Wang Kwang Yu who owns Glastech Pte Ltd along with his wife Kwee Lee Chien and their children.
The hotel has rooms sized between 26 square metres and 47 sq m with a chic restaurant at the rooftop and a lounge in its lobby.
The hotel is being bought by TCRE Partners Pte Ltd where Danny Koh founder of Tower Capital Asia holds equal stakes along with Y Developments, a company belonging to Ben Yeo and family.
Mr Yeo formerly worked with Guthrie GTS as MD Engineering while his son Nicholas currently leads TCRE Partners.
The property was acquired by Glastech in 2007. Back then it was a residential cum commercial building and they made alterations and additions to the building converting the building into a hotel.
Timothy Seow Studio designed the Wangz Hotel. Prices for the room range between for S$200++ and S$350++ for the superior rooms and deep suite respectively.
Chee Hok Yean, HVS President of Asia Pacific said that yield for the hotel would be around 3.4% of the $46 million considering 90% average occupancy at the same time average tariff of S$230.
The hotel industry in Singapore is doing exceedingly well with increase in arrivals of tourists and business travellers and shortage of new supply and are all set for increase in room tariffs.
Ms Chee believes that RevPAR (revenue per available room) in hotels is likely to increase by 3% to S$187 this year.
She added that occupancy along with average room rate expected to increase one percentage point to reach 86% and 2% per cent to S$219.
With positive outlook in the market and profitability in the horizon she is positive about new investment in the hotel market.
Wangz Hotel’s sale is expected to be sealed up in the early part of this year’s Q4 and Glastech shall in most likelihood hold lease of the property till the end of 2019.
The company is also the owner of Forest by Wangz, popular serviced apartment located along Moulmein Road and serviced office Wangz Business Centre located in Suntec City Tower 1’s Top Level
TCRE Partners are tight-lipped about their future plans with the Wangz Hotel.
Mr Nicholas Yeo however said that the Singapore based realty investment firm has plans to put its money in select sectors in major gateway cities.
He added that the focus for the firm was on blue chip properties that are spread across sector.
They are eyeing on properties that have excellent locational attributes such as corner sites, panoramic views and advantageous proximity to connectivity and residential sites in vibrant neighbourhoods.
He signed off by saying that the firm being an active player in the investment market is committed towards investing in properties that would offer sophisticated living and working ambiance for its clients and customers.
TCRE Partners have been Angullia Development’s asset managers since 2017 and been part of the TwentyOne Angullia Park condo which has 54 units.
In March last year Singaporeans formed a consortium to acquire all of Angullia Development’s equity at a tricky period when 41 units in TwentyOne Angullia Park were unsold.
The consortium included both Mr Ben Yeo and Mr Koh. Since then they have sold the apartment units selectively at prices between S$3,600 and S$4,000 psf.
The company in an official statement said that there are planning to release more units by the end of this year.
They also added that they are looking forward to more investment in the residential market apart from the hospitality sector as it is attractive being well regulated.