Capitol Singapore’s hotel, theatre and retail arcade put on market for S$650 million

TWO iconic properties in Singapore’s civic district are on the market: a chunk of the Capitol Singapore development, and Stamford Court.

The Business Times understands that Perennial Holdings has appointed two property consultants to suss out buying interest for The Capitol Kempinski Hotel Singapore, Capitol Theatre and the retail arcade space.

The total gross floor area (GFA) is about 244,500 sq ft, and the asking price is S$650 million.

The Capitol Singapore complex is on land with 99-year leasehold tenure that began in January 2011, so 85.5 years are left on the lease.

The 157 hotel rooms and suites are on the upper levels of the four-storey Capitol Building and Stamford House. On the street level of Stamford House are the hotel’s lobby, lounge, a restaurant and a bar.

Capitol Theatre, with a GFA of 39,000 sq ft, is a multifunctional venue for concerts, plays and movie screenings; it is also the hotel’s ballroom for weddings and a space for corporate events.

Stamford House, Capitol Building and Capitol Theatre are conserved buildings.

The arcade retail space that is part of the package for sale has a GFA of about 39,000 sq ft. It comprises shop units on Level 1 of Capitol Building, and restaurant units in a glass-covered air-conditioned space that was created along the internal street that once existed between Capitol Theatre and Stamford House/Capitol Building.

Word in the market is that Perennial has appointed CBRE and Savills to identify a buyer capable of managing the three components – hotel, theatre and retail arcade in a holistic, integrated fashion.

Perennial is excluding from this sale the new-build four-level retail podium (from Basement 2 to Level 2), which houses tenants such as Taiwanese bakery Wu Pao Chun, a Dyson Demo Store and a CYC made-to-measure shop. Above the retail podium, on levels three to 12, is The Eden Residences Capitol. All but five of the 39 residences there have been sold.

Across the road, Singapore Land Group is said to have sought S$150 million for Stamford Court, the most distinctive feature of which is a clock tower on its granite and glass facade. The property was valued at S$109.5 million as at Dec 31, 2023.

The four-storey building has retail units on the street level and offices above. The property is on a site area of around 22,300 sq ft with 99-year leasehold tenure that began in May 1994, leaving 68 years and nine months on the lease.

Stamford Court’s GFA of about 78,190 sq ft is 3.5 times the site area, in tandem with the plot ratio for the commercial-zoned site under the Urban Redevelopment Authority’s Master Plan.

Cushman & Wakefield is said to have conducted an expression-of-interest exercise for Stamford Court a few months ago.

While the GFA of the property has been maximised, there is potential to add value to the asset by converting the upper levels for hospitality use, such as a hotel, serviced apartments, or a co-living facility, while retaining retail units on the street level, said a seasoned property consultant.

“Part of the site has an elongated shape, which may be suitable for repurposing the space into a long corridor with hotel rooms or some form of accommodation,” he added.

Singapore Land, then known as United Industrial Corporation, clinched the site at a state tender that closed in late November 1993.

The plot was dubbed the “Eu Court site”, after the building that had stood there was acquired by the state in 1984 for road-widening purposes. In 1992, Eu Court was demolished, and the site put up for sale at a state tender the following year.

Eu Court, one of Singapore’s first apartment buildings, was built in the late 1920s by prominent businessman Eu Tong Sen.

Perennial Holdings, which owns the Capitol Singapore complex, was previously known as Perennial Real Estate Holdings, before it was delisted from the Singapore Exchange in September 2020.

In 2010, Perennial Real Estate Holdings and Pontiac Land Group’s affiliate Chesham Properties bagged the landmark Capitol Singapore site at a state tender, along with a third party that later pulled out of the joint venture. The relationship between Perennial and Pontiac soured; Perennial eventually bought out Chesham’s stake n 2018.

Perennial Holdings’ shareholders include Kuok Khoon Hong as well as Wilmar International, which he helms; other key shareholders include Osim founder Ron Sim and Asian alternative-asset management firm Hopu Investments. Perennial Holdings’ executive chairman and chief executive officer, Pua Seck Guan, is also a shareholder of the firm, along with Perpetual Capital VCC and Bangkok Bank.