HPL buys Concorde Hotel and Shopping Mall for S$821 million
Sale price works out to about S$1,804 per square foot per plot ratio
HOTEL Properties Ltd (HPL)’s wholly owned subsidiary has bought over Concorde Hotel and Shopping Mall for S$821 million, a shade above the guide price at which the mixed use development in Orchard was launched for sale.
The sale price works out to about S$1,804 per square foot per plot ratio (psf ppr), marketing agent Savills Singapore said on Thursday (Nov 7).
The land rate includes a S$213 million premium to top up the lease to a fresh 99 years, and assumes the site is rebuilt to include a hotel on 40 per cent of the gross floor area (GFA), residential use for another 40 per cent of GFA, and commercial use for the remaining 20 per cent.
Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore, said: “Being the largest collective sale this year, it is a testament of the stellar attributes of an Orchard Road development site and its endearing appeal to developers riding on the next wave of rejuvenation.”
Concorde Hotel and Shopping Mall was first put up for sale in September at a guide price of S$820 million or about S$1,801 psf ppr.
Located at 100 Orchard Road, the property is zoned for hotel use, with height control of up to 10 storeys. It has about 54 years left on its lease. The property currently comprises a three-storey retail podium and a 407-room hotel.
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It has a development baseline of 539,719 sq ft, which is equivalent to a plot ratio of 5.41, below the site’s approved master plan plot ratio of 5.6.
Along the same stretch of Orchard Road are buildings owned by HPL, which were bundled together in a redevelopment proposal approved by the URA in August last year. These include the voco Orchard Singapore hotel, Forum The Shopping Mall and HPL House.
Several buildings along Singapore’s prime retail bet have been sold in the last few years or were put up for sale.
In April, Delfi Orchard was sold to City Developments Ltd (CDL) for S$439 million, or SS$3,346 psf ppr. Before that, Ming Arcade was sold for S$172 million, or S$3,125 psf ppr in December 2022. HPL, which owned seven units at the commercial complex, received S$61 million from the sale.
In the same year, the freehold Tanglin Shopping Centre was sold to Pacific Eagle Real Estate held by the Tanoto family for S$868 million or S$2,769 psf.
While there was an attempt by Far East Shopping Centre to go en bloc earlier this year, it was not successful.
A S$910 million offer from a company linked to Chinese businessman Du Shuanghua’s Bright Ruby Resources fell through after the buyer failed to get approval from the URA to extend the site’s gross floor area in its proposed redevelopment, under the government’s Strategic Development Incentive scheme.
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