PROPERTY developer Tuan Sing Holdings : T24 0% plans to turn its headquarters at The Oxley into a hotel or serviced residence, in a bold move into the hospitality sector in Singapore. 

It is also considering turning its key asset Link@896 and the freehold site next to it into a hotel or serviced residence. 

Evaluation for this proposal is ongoing, subject to approval by the relevant authorities, Tuan Sing said in a corporate update on Friday (Oct 13).

The company said both properties present “potential value-creation opportunities”, with asset enhancement set to bring in incremental recurring income. 

Currently, Tuan Sing has two hospitality assets in its portfolio – the Grand Hyatt Melbourne and Hyatt Regency Perth. Both are five-star hotels. 

In Singapore, Tuan Sing is more well known as a property developer, with its most recent project Peak Residence fully sold and set to complete by 2024. 

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In 2021, the mainboard-listed company secured a private tender for the 1,592.4 square metre (sq m) freehold site at 870 Dunearn Road for S$56 million. 

In an interview with The Business Times in 2021, William Liem, group chief executive officer of Tuan Sing, said he saw a lot of potential for the new property, although plans for it had yet to be finalised. 

The five-storey Link@896 sits on a 13,089 sq m plot of land, the largest plot of commercial land along Bukit Timah Road, according to Tuan Sing. It is connected to King Albert Park MRT station and is known for its iconic Cold Storage supermarket. 

The average occupancy was 95 per cent in the first half of 2023, and Link@896 has a valuation of S$390 million as at Jun 5 this year.

Meanwhile, The Oxley, where Tuan Sing is headquartered, is a freehold 10-storey building along Oxley Rise in District 9. Under the Urban Redevelopment Authority Master Plan, it is zoned mixed commercial and residential, with a gross plot ratio of 4.2.

For the first half of 2023, Tuan Sing posted a 38.1 per cent fall in net profit to S$6 million, compared with S$9.7 million in the same period a year ago. 

Revenue, however, climbed 27 per cent to S$144.7 million. The company attributed this to higher revenue from its real estate development, hospitality and real estate investment segments.

On Friday, Tuan Sing said: “The group is closely monitoring the residential market, with cautious outlook over the higher interest rate and inflation environment.”

“The group’s commercial properties, 18 Robinson and Link@896, continue to enjoy improving occupancies and contribute to recurring income for the group.”

It added that Link@896 has also begun planning for an asset enhancement initiative which is expected to elevate the retail experience by improving the layout and tenant mix, with new amenities for shoppers. 

Shares of Tuan Sing closed flat at S$0.285 on Friday, before the announcement.