OAKWOOD Asia Pacific has secured a management contract from Newfort Realty Pte Ltd to manage the freehold property Chateau Eliza off Orchard Road as a serviced residence.
The management contract covers a period of 10 years, which is renewable for another 10 years.
This property at 18 Mount Elizabeth Road was acquired by Newfort Realty in 2012 for S$92.2 million in a collective sale with an original intent to redevelop it into a boutique residential development for sale.
But the lacklustre residential market prompted Newfort Realty to change its plans and obtain approval from the Urban Redevelopment Authority to convert the use of the property to that of serviced apartments.
The property is now undergoing refurbishment to become a 98-unit serviced residence, with the costs of S$25-30 million being borne by Newfort Realty.
To be branded as Oakwood Studios, a product tier under Oakwood "designed for global normads", the serviced residence will comprise studio apartments, one-bedroom and two-bedroom units. It will open its doors in November next year.
Oakwood Asia Pacific managing director Dean Schreiber said Oakwood is looking to extend the Oakwood Studios product tier to other cities such as Bangkok, London, New York, Tokyo, Sydney, and Shanghai where it is in talks with interested property owners.
Newfort Realty is a private firm owned by five shareholders, including two members of the Tan family behind Fortune Group. The Tans own 37 per cent of Newfort Realty.