The current proposal for redevelopment comprises of 2 residential buildings with estimated 700 units along with a commercial zone comprising of an “upper-midscale” hotel consisting of around 475 rooms and 192 serviced apartments also holding hotel license.
CDL and CapitaLand JV entities shall be controlling the commercial and residential components while CapitaLand’s wholly-owned subsidiary Ascott Reit will continue to own the serviced residences.
CDL will be signing a forward purchase agreement with City Developments Limited Hospitality Trusts (CDLHT) who will then own the hotels.
According to current plans CDLHT will be making a purchase forward either for S$475 m or 110% of the development, depending on which is lower at the time of completion of the hotel.
The project will open from 2024 in phases.
The serviced residents will continue to operate under the Somerset branding and is targeted to be operational by the latter half of 2024.
Meanwhile the hotel will be run and operated by Marriott International’s Moxy brand and is due to be completed by 2025.
Ascott Reit on the other hand said that from the 13,034 square meter gross floor area that it will be retaining will be redeveloped as serviced residences using the net proceeds it will acquire after selling its shares in Somerset Liang Court.
The lease tenure holding that is currently at 57 years will also be refreshed to 99 years after the new agreements are signed.
The projected expenditure for the serviced apartments is being estimated to be S$300 million. The current Somerset Liang Court has become old and is unable to compete with the upcoming hotels in the surroundings, Ascott Reit said.