Hpls Concorde Hotel Shopping Centre En Bloc Sale 820 Mil
The iconic Concorde Hotel & Shopping Centre, located at 100 Orchard Road, is now up for collective sale for the first time since its launch on September 3. This prime property is owned by Singapore-listed Hotel Properties Ltd (HPL) and comprises of 407 luxurious rooms on the fourth to ninth floors, as well as 63 out of the 98 strata shops in the three-storey retail podium, which boasts a total strata area of 108,510 sq ft.
“The Concorde Hotel & Shopping Centre has been an integral part of Orchard Road for many years,” comments Jeremy Lake, Managing Director of Investment Sales & Capital Markets at Savills Singapore. “Its redevelopment will usher in a new era of growth and revitalisation for the area.” Lake is also the marketing agent for Concorde Hotel & Shopping Centre, and has indicated a guide price of $820 million for the property. This price includes bonus gross floor area (GFA) from balconies, as well as a lease top-up premium of $213.1 million, bringing the land rate to $1,801 psf per plot ratio (ppr).
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Occupying a 99,623 sq ft corner island plot with a wide 170m frontage along Orchard Road, one of Singapore’s most popular shopping and entertainment districts, Concorde Hotel & Shopping Centre enjoys a prime location. In fact, it boasts one of the longest frontages along the famous street, second only to Ngee Ann City. In addition, it has four road frontages along Orchard Road, Cavenagh Road, Kramat Lane, and Buyong Road, making it easily accessible from all directions.
The main entrance to Concorde Hotel & Shopping Centre is currently located on Kramat Lane (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Zoned “Hotel” and with a 10-storey height control, the site has a remaining lease of 54 years as stated in HPL’s annual report for 2023. Official records from the Singapore Land Authority (SLA) indicate that the property has a 99-year lease from August 17, 1979. It has a verified development baseline of 539,719 sq ft, equivalent to a plot ratio of 5.41, which is slightly lower than the Master Plan’s plot ratio of 5.6.
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An Outline Planning Application has already been submitted to the relevant authorities for a mixed-use redevelopment consisting of 40% hotel, 20% residential, and 20% commercial space, according to Savills’ Lake. This is based on the assumption that the developer will pay the $213.1 million lease top-up premium to extend the lease to a fresh 99 years.
Apart from hotel, residential, and commercial use, the site can also be developed for luxury retail, subject to approval from the relevant authorities. “The buyer may also consider submitting an alternative Outline Planning Application for a different mix of uses,” adds 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 launch of the collective sale, an application was made to the Urban Redevelopment Authority (URA) for the Strategic Development Incentive (SDI) Scheme. However, the application was not approved, as one of URA’s eligibility criteria for the SDI scheme is that the redevelopment proposal should include a minimum of two adjacent plots. Nevertheless, Lake comments that this does not diminish the site’s potential, saying, “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.”
The future development will include a direct underground pedestrian walkway to the Somerset MRT Station (on the North-South Line). The site is currently just a three-minute walk away from both the Somerset MRT Station and the Dhoby Ghaut MRT Station, which serves as an interchange for three lines – the Northeast Line, North-South Line, and Circle Line. In addition, it will benefit from the Orchard Road rejuvenation plans, which include progressively pedestrianising a 500m stretch in front of the building from 2025. Moreover, the nearby Istana Park will also be expanded to include the space directly across the site, connecting it with existing green spaces at Penang Road Open Space and Dhoby Ghaut Green.
Opposite Concorde Hotel & Shopping Centre is United House at 20 Kramat Lane, where owners of the strata-titled office units are currently attempting a collective sale (Photo: Samuel Isaac Chua/EdgeProp Singapore)
In addition to the attractive attributes of Concorde Hotel & Shopping Centre, Savills has also reported a surge in collective sales among neighbouring developments. Right 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, with the CSC currently in the process of securing an 80% consensus among the owners.
Owners of Singapore Shopping Centre, a mixed-use property comprising of seven storeys and located at 190 Clemenceau Avenue, have also appointed Edmund Tie to handle their upcoming collective sale. The building, which currently has a 99-year lease from 1948 and covers a site area of 26,369 sq ft, is located directly opposite the Dhoby Ghaut MRT Interchange Station. However, this is not the first time that the property’s owners have attempted a collective sale. The property was previously launched for sale in February 2020 at a reserved price of $255 million, with provisional approval for the site to be rezoned as a hotel.
Concorde Hotel & Shopping Centre boasts four frontages along Orchard Road, Cavenagh Road, Kramat Lane, and Buyong Road (Photo: Savills Singapore)
Given the recent collective sale successes along Orchard Road, including Tanglin Shopping Centre ($868 million or $2,769 psf ppr), Ming Arcade ($172 million or $3,125 psf ppr), and Delfi Orchard ($439 million or $3,346 psf ppr), which Savills had brokered, Lake comments, “This is a testament to the exceptional attributes of a development site within the Orchard locale, which is highly sought after by developers looking to rejuvenate the area.”
Concorde Hotel & Shopping Centre has been described as an opportunity for the 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 hospitality expertise. While the site is currently zoned as a “Hotel,” it is also ideal for a mixed-use and integrated development, comments Lake. However, this is subject to approval from the URA. The tender for Concorde Hotel & Shopping Centre will close on October 16, 2024.