Freehold + Hotel Use is what the developers wish for, expect familiar Hotel Developer name that will make Headlines
Katong Plaza a property that has been zoned for commercial cum residential use has got approval from the URA (Urban Redevelopment Authority) to be converted into a hotel.
The plot ratio of the said plot has been fixed at 3.0. With this the 34,044 square feet freehold site now has a development potential of 102,133 sq ft gross floor area.
The en bloc site was re-launched by Huttons Asia its marketing agent on Thursday in a public tender. In a statement they said that the site can be converted into a 300-room hotel keeping the average size of the rooms at 215 sq ft.
The asking price of S$188 million has remained unchanged in the new tender and the price translates into S$1,968 psf ppr which is inclusive of the S$13 million that would go towards development charges.
Huttons Asia’s Head of Investment Sales Terence Lian said that Singapore has become the hub of MICE (meetings, incentives, conventions & exhibitions) as a global centre.
Being one of the financial centres of the world and a booming tourism economy is creating the need for more hotel rooms and the investor would be able to monetize on this emerging trend.
He added that Katong Plaza offers a rare opportunity to the investors as hotel room supply is at its lowest in a decade and the growth in tourism is creating a gap on the supply side.
For Hotel Development, Katong Plaza has all the necessary requirement. That is the reason why URA approve “Hotel Use” for this freehold site.
In the official statement, the marketing agents further stressed on the fact that Katong Plaza is advantageously located in a retail area with several food & beverage outlets in the vicinity.
The Marine Parade MRT station which is little more than 100 meters away offers good access to from Raffles Place MRT and other places of business and tourist interest.
Amenities like East Coast Park, Katong Shopping Centre, 112 Katong and Parkway Parade are close to the future hotel site
The Amazing Wonderful Jewel @ Changi will be open in April 2019 which is only few mins drive away from the freehold site. Apart from that, Central Business District, Singapore Sports Hub and Marina Bay can be reach in few mins.
Furthermore, a Hotel Site full of amenities and attractions around as well as close proximity to Changi Airport is an advantage, usually tourists prefer choice.
With the property’s excellent location and its freehold status, these are factors that bound to attract developers or investors.
Katong Plaza’s tender shall close on the 9th of April at 3:00 PM.