Latest news with #SavillsSingapore
Independent Singapore
3 days ago
- Business
- Independent Singapore
HPL receives green light to acquire entire Concorde Hotel and Shopping Mall strata area at S$821M
Photo: Facebook/Savills Singapore SINGAPORE: Hotel Properties Limited (HPL) has received the green light from the Strata Titles Board to proceed with acquiring the S$821 million entire strata area of the Concorde Hotel and Shopping Mall, The Edge Singapore reported. The deal, carried out through HPL's wholly owned subsidiary Luxury Peak, values the remaining property at about S$74.84 million. The company stated that the purchase will not have any material impact on its consolidated net earnings per share or consolidated net tangible assets per share, based on its financial results for the year ended Dec 31, 2024. Previously, HPL had already owned 95.4% of the property for years through five of its wholly owned subsidiaries, including the 407-room hotel, which spans levels four to nine, and 63 out of 98 strata shops in the three-storey retail podium. The total area covers about 108,510 square feet (sq ft). In September last year, Savills Singapore announced the sale of Concorde Hotel & Shopping Centre through a public tender, with a guide price of S$820 million or about S$1,801 per plot ratio (ppr). This price includes S$213.1 million to extend the lease to a new 99-year term, based on a proposed mixed-use scheme of 40% hotel, 40% residential, and 20% commercial use. See also Unsold properties in Johor worth $1.24 billion, cause for concern HPL, through Luxury Peak, later announced the en bloc purchase on Nov 7, 2024, for S$821 million, a million more than the guide price. /TISG Read also: Savills: Singapore private home prices could rise up to 7% amid strong demand and record-high new launches
Business Times
23-05-2025
- Business
- Business Times
Higher height limits a gamechanger for redevelopment potential in areas around Singapore airports: analysts
[SINGAPORE] Relaxed height restrictions near airports and airbases could result in huge increases in built up floor area allowances, a move lauded by property market observers for its potential to unlock redevelopment opportunities. The government is reviewing Singapore's height limits for buildings near airports, Transport Minister Chee Hong Tat disclosed on May 22. Residential buildings could be built up to 15 storeys taller, and commercial and industrial buildings could be built up to nine storeys taller. Depending on the existing height limit, adding up to 15 storeys could mean a 100 to 200 per cent increase in gross floor area (GFA) for residential developments, said Tricia Song, CBRE's head of research for Singapore and South-east Asia. 'In land-scarce and densely populated Singapore, one of the fastest and most efficient ways to increase liveable space is to go vertical – allowing more gross area to be built on the same land site,' she said. Alan Cheong, executive director at Savills Singapore, called the review a welcome policy change that may allow nearby properties to raise their plot ratios. Plot ratio determines the maximum allowable GFA on a plot of land. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The review was conducted by the International Civil Aviation Organization (ICAO) and the Civil Aviation Authority of Singapore (CAAS), and changes take effect internationally from August. Singapore has two airports in Changi and Seletar; and military airbases in Paya Lebar, Sembawang, Changi and Tengah. Areas near Changi Airport include Pasir Ris, Tampines, Simei, Bedok, Eunos and East Coast Park. Seletar Airport is near Seletar, Yishun, Ang Mo Kio and Yio Chu Kang. Cheong said the review could lead to a significant increase in GFA from collective sales or redevelopment of existing residential and commercial properties. Older commercial buildings near Paya Lebar air base, previously limited by height restrictions, could see redevelopment potential. Additional GFA may be unlocked if industrial sites are rezoned for higher-value uses. Details of the proposed changes have yet to be revealed by the authorities. Building height limits near airports and airbases depend on their distance from runways and air navigation equipment, said Lim Boon Chai of To70 Aviation Consulting. Generally, buildings up to 4 km from an airport are allowed to reach 45 m above runway elevation, though stricter limits apply along flight paths or near navigational facilities. Outside these zones, height caps vary – up to 305 m in the CBD and 150 m in some residential areas, he said. A 2019 report by the Centre for Liveable Cities, an arm of the Ministry of National Development, noted that in Tampines, building heights are capped at 12 to 14 storeys. Aviation height restrictions, among other factors, can influence the type of properties built on a site and the value they fetch. Market boost? Analysts reckon that changes to height limits could also drive up the value of existing homes and buildings. CBRE's Song said that for older projects, the increased plot ratios will benefit potential en bloc sellers as their land is now worth more. 'If you can build more gross area on the same piece of land, there is more premium in selling for redevelopment than in selling in the secondary market,' she added. Developers in turn may now be prepared to pay more. 'The gap between developers' prices and sellers' prices will narrow, and more en bloc or collective sales could happen,' she said. Developers could also now have more choices for their landbanking, she added. The collective sales market was subdued in 2024, with only four successful deals out of the 16 properties put on the market – half of 2023's 32 properties. Most recently in April, the tender for Pasir Ris condo Elias Green closed with no bids, after being put on the market with a guide price of S$928 million. The site, currently built up to 16 storeys and standing on a parcel with a low plot ratio of 1.4, was priced at a land rate of S$1,355 per square foot per plot ratio. This factors in a 10 per cent bonus gross floor area and an estimated land betterment charge of S$150.8 million for intensification and upgrading to a fresh 99-year lease. 'Owners of Elias Green have submitted an outline application for an increase in plot ratio from 1.4 to 1.8. With this relaxation in building height, the URA may view the outline application in a more favourable light,' said Tay Liam Hiap, the agency's managing director of capital markets and investment sales. Savills' Cheong expects prices of new residential projects or resale flats near airports and air bases to rise. 'Any new launches or resales in the area will price in the future growth potential and thus prices would implicitly be moving up from now on,' he said. 'Developers would bid according to what they believe they can sell and if the selling prices go up, then they will be more willing to bid higher for either government land sales or collective sales sites.' CBRE's Song noted that for residential projects, taller buildings generally command higher prices per square foot, as buyers value unblocked views and reduced noise. While relaxed height restrictions could increase supply across residential, commercial and industrial sectors, lifting GFA allowances requires further feasibility studies, said Knight Frank Singapore's head of consultancy Alice Tan. Private sites with 'low development baselines' are less likely to support higher plot ratios or upgraded use groups, given current high land betterment charge (LBC) rates, she noted. Developers pay an LBC for the right to enhance the use of some sites or to build bigger projects on them. Still, analysts cautioned that more studies are needed before redevelopment can take off. CBRE's Song said: 'Increased plot ratios will mean higher density, and the existing road network and transport infrastructure may not be able to support. Detailed transport impact assessment and planning will have to be undertaken.' Chua Yang Liang, JLL's head of research and consultancy for South-east Asia, said: 'Any increase in development capacity would need to be evaluated alongside corresponding adjustments to LBCs, construction costs, and other financial considerations that developers must balance.' The CAAS said agencies will assess the implications of the revisions, taking into account other infrastructure and planning considerations. Savills' Cheong also pointed out that the increase in height limits may not be beneficial for commercial properties upon redevelopment. 'Already, the demand for offices in less prime locations is not strong, and the retail/food and beverage sectors have been struggling.'
Business Times
14-05-2025
- Business
- Business Times
Six HDB shophouses on the market for S$73 million
[SINGAPORE] A portfolio of six HDB shophouses located across Toa Payoh, Ang Mo Kio and Tanjong Pagar is up for sale for S$73 million. Based on checks by The Business Times, the shophouses are owned by Royal Group, a Singapore-based, single-family office founded by billionaire Asok Kumar Hiranandani. The units can be acquired individually or as a portfolio, said marketing agent Savills Singapore on Wednesday (May 14). One shophouse is located at the ground floor of 190 Toa Payoh Lorong 6, in the vicinity of HDB Hub. Subdivided into three units and fully leased, the shophouse occupies a total lot area of 1,033 square feet (sq ft) and is being sold for a guide price of S$12 million. Two shophouses at 702 and 705 Ang Mo Kio Avenue 8 are located next to AMK Hub. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up 'The properties have a wide street frontage along the pedestrian mall with strong visibility and are always fully leased,' said Nick Chan, associate director of investment sales and capital markets at Savills Singapore. The 702 Ang Mo Kio Avenue 8 shophouse spans 4,037 sq ft and is available from S$36 million. The 705 Ang Mo Kio Avenue 8 shophouse, at 1,647 sq ft, has a guide price of S$10 million. The remaining three shophouses in the portfolio are located in Tanjong Pagar Plaza. Each unit is on sale from S$5 million. The units enjoy substantial frontage along Tanjong Pagar Road and are located next to NTUC Fairprice, said Chan. There are approximately 8,500 privately held HDB shophouses making them among the most tightly held commercial assets in Singapore. 'Each unit in the portfolio offers a gross yield of approximately 4 per cent, with further upside potential through rental reversion or further subdivision of space to drive rental income,' Chan noted. 'This portfolio provides investors with an immediate income-generating opportunity across three established and highly sought-after mature residential estates.'
Business Times
13-05-2025
- Business
- Business Times
Royal Group puts six HDB shophouses up for sale for S$73 million
[SINGAPORE] A portfolio of six HDB shophouses located across Toa Payoh, Ang Mo Kio and Tanjong Pagar is up for sale for S$73 million. Based on checks by The Business Times, the shophouses are owned by Royal Group, a Singapore-based, single-family office founded by billionaire Asok Kumar Hiranandani. The units can be acquired individually or as a portfolio, said marketing agent Savills Singapore on Wednesday (May 14). One shophouse is located at the ground floor of 190 Toa Payoh Lorong 6, in the vicinity of HDB Hub. Subdivided into three units and fully leased, the shophouse occupies a total lot area of 1,033 square feet (sq ft) and is being sold for a guide price of S$12 million. Two shophouses at 702 and 705 Ang Mo Kio Avenue 8 are located next to AMK Hub. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up 'The properties have a wide street frontage along the pedestrian mall with strong visibility and are always fully leased,' said Nick Chan, associate director of investment sales and capital markets at Savills Singapore. The 702 Ang Mo Kio Avenue 8 shophouse spans 4,037 sq ft and is available from S$36 million. The 705 Ang Mo Kio Avenue 8 shophouse, at 1,647 sq ft, has a guide price of S$10 million. The remaining three shophouses in the portfolio are located in Tanjong Pagar Plaza. Each unit is on sale from S$5 million. The units enjoy substantial frontage along Tanjong Pagar Road and are located next to NTUC Fairprice, said Chan. There are approximately 8,500 privately held HDB shophouses making them among the most tightly held commercial assets in Singapore. 'Each unit in the portfolio offers a gross yield of approximately 4 per cent, with further upside potential through rental reversion or further subdivision of space to drive rental income,' Chan noted. 'This portfolio provides investors with an immediate income-generating opportunity across three established and highly sought-after mature residential estates.'
