Hotel Project on Singapore’s Orchard Road on Market for $143M

A long-delayed store hotel task in Singapore's Orchard Road location has actually been offered at a sign cost of S$ 195 million ($143.3 million), CBRE stated Thursday.

The 115-key job is being used to prospective purchasers through an expression of interest workout closing on 30 May, according to the residential or commercial property consultancy, which is marketing the advancement at 110 Killiney Road on behalf of Singapore-based fund supervisor Lucrum Capital, which had actually gotten what was then the Tai Wah Building in 2017 for S$ 84.9 million.

“Freehold hotels in the Orchard Road submarket are hardly ever offered for sale and have actually constantly been considered as generational prize possessions that bestow fantastic status and opportunity,” stated Michael Tay, CBRE's head of capital markets for Singapore. “Furthermore, most of hotels in Orchard are substantial with more than 200 secrets, making such shop offerings limited.”

Found 5 minutes' walk from Orchard Road in Singapore's premier shopping district, the task remains in a location that has actually ended up being a center for metropolitan renewal, with LaSalle Investment Management and personal equity company TE Capital presently redeveloping the VisionCrest Commercial Building a couple of blocks away.

Area in APAC

The seven-storey Mama Shelter Singapore Orchard has 40 metres (44 lawns) of frontage along Killiney Road in classy District 9, inhabiting a 13,148 square foot land parcel and covering an overall flooring location of 39,628 square feet (3,682 square metres).

The task sits next door to Lendlease's S$ 3 billion redevelopment of Singtel's Comcentre head office and approximately 5 minutes by foot from Somerset MRT station.

The freehold hotel is to be run by French hospitality giant Accor's Ennismore department under the wacky Mama Shelter brand name established by the Trigano household behind Club Med.

Due to open to visitors in the very first quarter of 2025, the hotel is the very first Asia Pacific place for Mama Shelter, which promotes a mix of metropolitan style, cost and “a touch of new-wave glamour”. The brand name counts 18 hotels and 2,600 spaces worldwide, primarily in Europe.

The a sign cost for Mama Shelter Singapore Orchard equates to S$ 1.7 million ($1.3 million) per secret and S$ 4,921 ($3,618) per square foot of flooring location. Lucrum had actually put the job on the marketplace at an asking rate of S$ 155 million in 2019, however eventually stopped working to discover a purchaser.

“We anticipate this financial investment chance to appeal significantly and amass strong interest from a vast array of financiers such as household workplaces, store realty funds, regional business and high-net-worth people,” Tay stated.

Little Red Dot's Hotspot

Orchard Road continues to be a redevelopment hotspot, with an aging structure near the Four Seasons and Pan Pacific Orchard hotels released for sale recently at a reserve rate of S$ 438 million ($321 million).

Delfi Orchard, an 11-storey retail and house residential or commercial property bulk owned by City Developments Ltd, is the target of a tender for cumulative sale. The prospective purchaser is entitled to establish an industrial tower of approximately 131,186 square feet on the website at the corner of Orchard Road and Claymore Roads.

The Singapore federal government has actually been motivating designers to tear down aging structures along the widely known shopping strip, with the Urban Redevelopment Authority in 2020 having actually revealed a master strategy to revitalize the location into a “green Oasis in the city”, which financiers anticipate to increase residential or commercial property worths.

In spite of that motivation, Bright Ruby Resources, a financial investment company backed by Chinese billionaire Du Shuanghua, previously this month revoked a S$ 908 million offer to purchase the Far East Shopping Centre, situated one block down Orchard Road from Delfi Orchard, when it stopped working to win approval for rewards which would have enabled it to supersize the home.