High potential seen for HPL's west Orchard assets

HOTEL Properties Ltd (HPL) assets in West Orchard are ripe for revitalisation and a future mega-development could play a central role in remaking the area, according to an OCBC analyst report released yesterday.

In the aftermath of the HPL buyover last month by 68 Holdings, a consortium led by Ong Beng Seng and Wheelock Properties, the report proposes that there is a strong case for the future redevelopment of a large HPL-owned site in the area.

The report estimates that 68 Holdings needed to secure access to approximately $1.3 billion for its general offer. This significant capital commitment combined with a five-year "break-up" clause for any of the consortium parties in 68 Holdings' offer document suggests that the consortium intends to form a majority controlling stake to implement future plans.