Hpls Concorde Hotel Shopping Centre En Bloc Sale 820 Mil
The iconic Concorde Hotel & Shopping Centre, located at 100 Orchard Road, has hit the market for the first time on September 3 for a collective sale. The property, owned by Singapore-listed Hotel Properties Ltd (HPL), includes the 407-room Concorde Hotel on the fourth to ninth floors, as well as 63 of the 98 strata shops in the three-storey retail podium, with a total strata area of 108,510 sq ft.
Managing Director of Savills Singapore, Jeremy Lake, says, “The Concorde Hotel & Shopping Centre has been a central part of Orchard Road for decades. Its redevelopment will bring a new wave of growth and revitalisation to the area.” Savills Singapore, the marketing agent for the sale, has set a guide price of $820 million, which includes bonus gross floor area (GFA) from balconies and a lease top-up premium of $213.1 million. This brings the land rate to $1,801 psf per plot ratio (ppr).
The property sits on a 99,623 sq ft corner island plot with a 170m frontage along Orchard Road, one of the longest and second only to Ngee Ann City. It also has four road frontages along Orchard Road, Cavenagh Road, Kramat Lane, and Buyong Road. The main entrance to the Concorde Hotel & Shopping Centre is located on Kramat Lane.
The site is zoned “Hotel” and has a 10-storey height control. HPL’s 2023 annual report states that the property holds a 99-year lease from August 17, 1979. This means it has a remaining lease of 54 years. The property has a development baseline verified by the Singapore Land Authority (SLA) at 539,719 sq ft, equivalent to a plot ratio of 5.41, compared to the Master Plan plot ratio of 5.6.
Savills’ Lake has stated that an Outline Planning Application has been submitted to the authorities for a mixed-use redevelopment, with 40% allocated to hotel, 20% to residential and 20% to commercial use. This is based on the assumption that the developer pays $213.1 million to top-up the lease to a fresh 99 years.
The Concorde Hotel & Shopping Centre has a 170m frontage along Orchard Road, second only to Ngee Ann City, making it a key gateway project for the area. The site offers developers ample planning flexibility and multiple development options to create the next iconic landmark development in the heart of Orchard Road. The property is also located just 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).
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The future development of the site will also benefit from the Orchard Road rejuvenation plans, which include pedestrianising a 500m stretch of Orchard Road from 2025. Additionally, the Istana Park next door will 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.
The collective sale of Concorde Hotel & Shopping Centre has spurred a wave of collective sales among neighbouring developments as well. The owners of United House at 20 Kramat Lane, a freehold office building directly behind the Concorde Hotel & Shopping Centre, have already appointed a marketing agent, Edmund Tie, to handle their collective sale. The strata owners of Singapore Shopping Centre, located at 190 Clemenceau Avenue and directly opposite the Dhoby Ghaut MRT Interchange Station, have also appointed Edmund Tie for their collective sale.
The site’s potential uses include luxury retail, residential, and hotel, but subject to relevant authorities’ approval. The buyer can also consider submitting an alternative Outline Planning Application for a different mix of uses. The Concorde Hotel & Shopping Centre site presents an opportunity for an incoming developer to create an iconic and dynamic space that anchors and accelerates the rejuvenation of Orchard Road. Savills expects interest in the site to come from major local and regional developers, particularly those with hospitality expertise.
While the site is currently zoned ‘Hotel’, it is also suitable for a mixed-use and integrated development, subject to URA approval. The tender for the Concorde Hotel & Shopping Centre will close on October 16, 2024.