The winning bid is $62m higher than United Venture Investments' $500m offer.
The hotel site in Club Street recorded a winning bid of $562m from Midtown Development, the Urban Redevelopment Authority (URA) revealed. This translates to a sale price of $23,126.29 psf of the gross floor area (GFA) of the site.
The said bid is higher by $62m to the second biggest bid of $500m made by United Venture Investments. In total, the site received eight bids.
The winning bid by Midtown Development is 22% higher than the Singtel site on Hill Street which is the most recent hotel land sale, Giuliano Esposito, Senior Vice President, Strategic Advisory & Asset Management, JLL Hotels & Hospitality commented.
“The premium paid for the Club Street site is likely due to the fact that it is one of the few remaining centrally located sites available for hotel development,” he added. “Together with robust hotel fundamentals and positive market outlook, pricing has been pushed to such levels.”
The land parcel is near the China Square area as well as the Central Business District as it is located along the junction of Cross Street and Club Street. . It is also close to nearby tourist attractions such as the Sri Mariamman Temple, Buddha Tooth Relic Temple & Museum and Thian Hock Keng temple.
The future hotel development will be directly connected to Chinatown MRT interchange station (North East Line and Downtown Line) and Telok Ayer MRT station (Downtown Line). It is also within walking distance to the future Maxwell MRT station (Thomson-East Coast Line), enjoying convenient and seamless island wide access via the rail network.
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