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Will ESR-Logos Reit cash in on buying interest in short-lease hospitality assets?

Even if the price fetched is below the end-2023 valuation, it may be worthwhile for the Reit to strike a deal for its hotel and convention centre next to Expo MRT station

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Kalpana Rashiwala

Kalpana Rashiwala

Published Fri, Oct 4, 2024 · 05:00 AM
    • ESR BizPark@Changi is on land with a 30-year lease term from Feb 1, 2008, with an option to extend for a further 30 years.
    • It remains to be seen if ESR-Logos Reit will seal a deal to sell the Park Avenue Changi hotel and convention centre of its project near Expo interchange MRT station.
    • ESR BizPark@Changi is on land with a 30-year lease term from Feb 1, 2008, with an option to extend for a further 30 years. SOURCE: ONEMAP; GRAPHIC: HANNAH KWAH, BT
    • It remains to be seen if ESR-Logos Reit will seal a deal to sell the Park Avenue Changi hotel and convention centre of its project near Expo interchange MRT station. PHOTO: GOOGLE MAPS

    PROPERTY investors seem to have become more receptive to buying Singapore hospitality and commercial properties on short-land-tenure sites over the past year. This provides an opportune exit for the owners of such properties.

    In late 2023, Viva Land sold the former SO/ Singapore hotel on a site in Robinson Road with about 47.5 years’ balance lease. This was sold to a consortium that included the Tan family behind Sunray Woodcraft Construction and Mini Environment Service. Mingtiandi reported the price at around S$170 million to S$180 million.

    This year, Paragon Real Estate Investment Trust (Reit) managed to sell The Rail Mall, in Upper Bukit Timah Road, on land with a balance lease of about 21 years and nine months. The Yong family behind Woh Hup Holdings picked up the single-storey strip mall for S$78.5 million.

    Hock Lock SiewCommercial & IndustrialSingapore propertyESR-Logos Reit

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