Hpls Concorde Hotel Shopping Centre En Bloc Sale 820 Mil
The iconic Concorde Hotel and Shopping Centre, located at 100 Orchard Road, is now up for collective sale for the first time since its launch on September 3. Owned by Singapore-listed Hotel Properties Ltd (HPL), Concorde Hotel boasts 407 rooms on the fourth to ninth floors, along with 63 out of the 98 strata shops in the three-story retail podium, which has a total strata area of 108,510 sq ft.
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According to Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore, “The Concorde Hotel & Shopping Centre has been a central part of Orchard Road for decades. Its redevelopment will usher in a new era of growth and revitalisation for the area.” Savills Singapore, the marketing agent for Concorde Hotel & Shopping Centre, has set a guide price of $820 million for the property, which includes bonus gross floor area (GFA) from balconies and a lease top-up premium of $213.1 million, bringing the land rate to $1,801 psf per plot ratio (ppr).
The property sits on a prime 99,623 sq ft corner island plot with a 170m frontage along Orchard Road, making it the second longest after Ngee Ann City. It enjoys four road frontages, including Orchard Road, Cavenagh Road, Kramat Lane, and Buyong Road. The main entrance to Concorde Hotel & Shopping Centre is from Kramat Lane (Photo: Samuel Isaac Chua/EdgeProp Singapore). The property is zoned for hotel use and has a 10-storey height control. According to HPL’s 2023 annual report, the property has a remaining lease of 54 years, with a 99-year lease from August 17, 1979.
The property’s development baseline, verified by the Singapore Land Authority (SLA), is at 539,719 sq ft, equivalent to a plot ratio of 5.41, slightly lower than the Master Plan’s plot ratio of 5.6. An Outline Planning Application has been submitted to the authorities for a mixed-use redevelopment, which includes 40% for hotel, 20% for residential, and 20% for commercial use, according to Savills’ Lake. This assumes that the developer pays $213.1 million to top-up the lease to a fresh 99 years.
However, potential uses for the site may include luxury retail, residential, and hotel, subject to relevant authorities’ approval. “The buyer may also consider submitting an alternative Outline Planning Application for a different mix of uses,” says Lake. “The site offers developers ample planning flexibility and multiple development options to create the next iconic landmark development in the heart of Orchard.”
Prior to the collective sale launch, an application was made to URA for the Strategic Development Incentive (SDI) Scheme. However, the application was not approved due to one of URA’s eligibility criteria, which states that the redevelopment proposal should include a minimum of two adjacent plots. This does not diminish the site’s attributes, according to Lake. “The future development on the Concorde Hotel & Shopping Centre site will be a key gateway project that will connect Dhoby Ghaut to the upper stretch of Orchard Road,” he remarks.
The future development will include a direct underground pedestrian walkway to the Somerset MRT Station (on the North-South Line). The site is currently a three-minute walk from both the Somerset MRT Station and the Dhoby Ghaut MRT Station, an interchange for three lines (Northeast Line, North-South Line and Circle Line). It will benefit from the Orchard Road rejuvenation plans, which include gradually pedestrianising a 500m stretch in front of the building from 2025. The Istana Park next door will also be expanded to include the space directly across the site, linking it with existing green spaces at Penang Road Open Space and Dhoby Ghaut Green. Sitting opposite Concorde Hotel & Shopping Centre is United House at 20 Kramat Lane, where owners of the strata-titled office units are also attempting a collective sale (Photo: Samuel Isaac Chua/EdgeProp Singapore).
The collective sale of Concorde Hotel & Shopping Centre has also sparked a wave of collective sales in the surrounding developments. Directly behind the building is United House, a freehold office building at 20 Kramat Lane. The collective sale committee (CSC) at the freehold office building has already appointed Edmund Tie as the marketing agent for their collective sale. The CSC is in the process of securing an 80% consensus among the owners for the collective sale.
The strata owners of Singapore Shopping Centre have also appointed Edmund Tie to handle their upcoming collective sale. Located at 190 Clemenceau Avenue, the seven-storey, mixed-use development is directly opposite the Dhoby Ghaut MRT Interchange Station. The building sits on a 26,369 sq ft site with a 99-year lease from 1948.
This marks the second time Singapore Shopping Centre’s owners have attempted a collective sale. The last time was in February 2020, when it was launched for sale at a reserve price of $255 million, with provisional approval for the site to be rezoned as a hotel. Concorde Hotel & Shopping Centre has four frontages along Orchard Road, Cavenagh Road, Kramat Lane, and Buyong Road (Photo: Savills Singapore).
Over the past three years, there have only been three successful collective sales along Orchard Road: Tanglin Shopping Centre, which sold for $868 million ($2,769 psf ppr) in February 2022; Ming Arcade, which fetched $172 million ($3,125 psf ppr) in December 2022; and Delfi Orchard, which went en bloc for $439 million ($3,346 psf ppr) in May this year. Savills brokered all three deals, reflecting on the highly sought-after nature of properties within the Orchard locale, with developers eagerly anticipating the next wave of rejuvenation. The Concorde Hotel & Shopping Centre site presents a unique opportunity for an incoming developer to create an “iconic and dynamic space that anchors and accelerates the rejuvenation of Orchard Road.” Lake expects interest in the site to come from major local and regional developers, particularly those with expertise in the hospitality sector.
While the site is currently zoned for hotel use, it is also suitable for a mixed-use and integrated development, subject to URA’s approval. The tender for the Concorde Hotel & Shopping Centre site will close on October 16, 2024.