Singapore’s hospitality sector closes first ever investment deal of the year in Q3
It’s a deal worth over S$500m for the sale of PARKROYAL on Kitchener Road.
In Q3/2023, Singapore’s hospitality sector witnessed the first transaction year-to-date, contributing S$525.0 million or 7.4% of the quarter’s total investment sales, according to data from Savills.
It is United Overseas Land’s (UOL) divestment of its PARKROYAL on Kitchener Road to an entity of Worldwide Hotels Group, the owner of Hotel 81 in Singapore in July. Located at 181 Kitchener Road, the 542-room hotel is in the cultural district of Little India and close to the Farrer Park MRT station.
Here’s more from Savills:
In the mixed-use property sector, two deals worth a total of S$1.22 billion were recorded in Q3/2023, making up 17.1% of the total market. In July, a consortium between UOL Group, Singapore Land and CapitaLand Development bagged the 99-year GLS commercial and residential site at Tampines Avenue 11 with a winning bid of nearly $1.21 billion, or $885 psf ppr.
The future mixed-use development proposed by the joint venture partners will offer about 1,190 new homes as well as retail and community amenities which are expected to cater to the lifestyle needs of the growing residential population in Tampines North.
Separately, in August, Coliwoo (Sin Ming), LHN Group’s wholly owned subsidiary, purchased 99 Rangoon Road for S$14.5 million, with plans to convert the property into a student hostel with retail or food and beverage on the first floor.
Investment sales for industrial properties came to S$269.6 million in Q3/2023. This came from the award of one industrial site under the Industrial GLS Programme and 11 deals from the private sector. The sales value was however 67.2% below that of the previous quarter.
The largest transaction was the sale of Sime Darby Business Centre at 315 Alexandra Road for S$68.0 million to Eagle Land (Credit), which was reported to be in the car dealership business. The price works out to about S$380 psf on the existing GFA of nearly 179,190 sq ft.