URA launches Little India white site for sale by tender
10,781 sq m area likely to draw hotel, office developers
The Urban Redevelopment Authority has launched a site at Belilios Road/Klang Lane in Little India for sale by public tender.
Designated a white site, the possible uses of the site, which has a plot ratio of 3.5 and permissible gross floor area of 10,781 square metres, include hotel, retail, dining, entertainment, office and residential.
This site, next to a Hindu temple on Belilios Road, is also one of the five sites that were transferred from the Reserve List of the Government Land Sales Programme to the Confirmed List for the H107.
Savills Singapore director (marketing and business development) Ku Swee Yong notes that the site does not have significant street frontage facing Serangoon Road. Its irregular shape could also prove a challenge for developers.
Mr Ku believes an office block with a retail component could be feasible but adds that a hotel development is more likely to benefit from the tourism appeal of the area.
As such, Mr Ku believes that a 180- to 200-room hotel with a retail or F&B component would be an attractive proposition for a developer.
Based on a cost of about $250,000 per room for a three- to four-star hotel, and additional costs for retail/F&B component, Mr Ku believes the site could draw bids of around $50 million or between $400-$450 per square feet per plot ratio (psf ppr).
Knight Frank director (consultancy and research) Nicholas Mak also believes developers will more likely propose a hotel development with a commercial component for the site.
He also noted the proximity to the temple could make the site unsuitable for a residential development.
Mr Mak expects developers will bid between $350-$450 psf ppr and added that the site is ‘likely to attract a few bids, and mostly from smaller developers and possible some interest from overseas Indian property companies’.
Apart from the Belilios Road/Klang Lane site, other sites on the Confirmed List that will be launched include a residential site at Choa Chu Kang Road/Woodlands Road, a commercial site at Tampines Grande and a sports and recreation site at Fairy Point Hill.
Source : Business Times - 28 Feb 2007
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