Friday, June 26, 2009

URA tender for hotel site coming up

THE Urban Redevelopment Authority (URA) will launch a public tender for a hotel site at New Bridge Road in two weeks’ time, it said yesterday.

The 0.45ha site was made available for sale through the government’s reserve list system in April 2007. Under the reserve list system, the government will put up a site for public tender only if it receives an application from a developer who commits to bid for the site at or above the minimum price which is acceptable to the government.

URA said that it has received an application from a developer who has committed to bid at a price of not less than $43.9 million for the land parcel, which triggers the public tender.

Analysts said that interest seems to be returning to small development sites with good attributes.
Earlier this month, a government tender for a small hotel site on Short Street closed with a whopping 14 valid bids received. The number of bids – 15 in all, including one bid judged invalid because it was below the minimum bid price – is one of the highest received for a Government Land Sales tender.

The New Bridge Road site, which can house a boutique hotel development with about 200 rooms, is also thought to be attractive as it is very close to Outram Park MRT Station and should receive several bids, analysts said. It has a maximum permissible gross floor area of 168,853 sq ft.

Source: Business Times, 26 June 2009

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