Hpls Concorde Hotel Shopping Centre En Bloc Sale 820 Mil

The iconic Concorde Hotel & Shopping Centre at 100 Orchard Road has been put up for collective sale for the first time since its launch on September 3rd. This prime property, owned by Singapore-listed Hotel Properties Ltd (HPL), features a 407-room 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.

“The Concorde Hotel & Shopping Centre has been a central landmark on Orchard Road for decades,” says Jeremy Lake, the managing director of investment sales & capital markets at Savills Singapore. “Its redevelopment will bring a new era of growth and revitalization to the area.”

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The Elta Condo site at Clementi Avenue 1 has recently attracted six bidders, with the top bid reaching as high as $633.45 million. With a land area of 178,066 square feet and a leasehold of 99 years, this translates to a price of $1,250 per square foot per plot ratio (psf ppr). This bid surpassed the second-highest bid of $608.89 million, which equates to $1,202 psf ppr, by a margin of 4.03%. For more information on the development, please visit Clementi Avenue 1 Condo.

Savills Singapore, the marketing agent for the Concorde Hotel & Shopping Centre, has set a guide price of $820 million for the property. This includes bonus gross floor area (GFA) from balconies and a lease top-up premium of $213.1 million, bringing 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, the second longest on the road, only behind 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 (Photo: Samuel Isaac Chua/EdgeProp Singapore) The site is zoned for hotel use and has a 10-storey height control. According to HPL’s 2023 annual report, the property has a 99-year lease from August 17, 1979, giving it 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.

An Outline Planning Application has already been submitted to the authorities for a mixed-use redevelopment featuring 40% hotel, 20% residential, and 20% commercial use, according to Savills’ Lake. This assumes the developer pays $213.1 million to top-up the lease to a fresh 99 years.

The Concorde Hotel & Shopping Centre features a 170m frontage along Orchard Road, one of the longest, second only to Ngee Ann City (Photo: Samuel Isaac Chua/EdgeProp Singapore)‘A significant gateway project’The site presents a range of potential uses including luxury retail, residential, and hotel, subject to the relevant authorities’ approval. “The buyer may also consider submitting an alternative Outline Planning Application for a different mix of uses,” notes 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 had been made to URA for the Strategic Development Incentive (SDI) Scheme. However, it was not approved, as one of URA’s eligibility criteria for the SDI scheme stipulates that the redevelopment proposal must include a minimum of two adjacent plots.

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However, that has not diminished the appeal of the site, according to Lake. “The future development on the Concorde Hotel & Shopping Centre site will be a significant gateway project that will connect Dhoby Ghaut to the upper stretch of Orchard Road,” he comments.

The future development will include a direct underground pedestrian walkway to the Somerset MRT Station (on the North-South Line). The site is currently 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). It will also benefit from the Orchard Road rejuvenation plans, which include progressively pedestrianizing a 500m stretch in front of the building from 2025. The Istana Park next door 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 the Concorde Hotel & Shopping Centre is United House at 20 Kramat Lane, where strata owners are attempting a collective sale (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Collective sale fever

The collective sale of the Concorde Hotel & Shopping Centre has also sparked a wave of collective sales among neighboring properties.

Directly behind the building is United House, a freehold office building at 20 Kramat Lane. The collective sale committee (CSC) at the property has already appointed Edmund Tie as the marketing agent for their collective sale and is in the process of securing an 80% consensus among owners.

The strata owners of Singapore Shopping Centre have also appointed Edmund Tie to handle their upcoming collective sale. Located at 190 Clemenceau Avenue, the seven-storey mixed-use development is directly opposite the Dhoby Ghaut MRT Interchange Station. The building sits on a 26,369 sq ft site with a 99-year lease from 1948.

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This is not the first time Singapore Shopping Centre’s owners have attempted a collective sale. The last attempt was in February 2020, when it was launched for sale at a reserve price of $255 million, with provisional approval for the site to be rezoned as a hotel.

Concorde Hotel & Shopping Centre has four frontages along Orchard Road, Cavenagh Road, Kramat Lane, and Buyong Road (Photo: Savills Singapore)

An opportunity to create an icon

Over the past three years, there have been three successful collective sales along Orchard Road: Tanglin Shopping Centre, which sold for $868 million ($2,769 psf ppr) in February 2022; Ming Arcade, which fetched $172 million ($3,125 psf ppr) in December 2022; and Delfi Orchard, which went en bloc for $439 million ($3,346 psf ppr) in May this year.

Savills brokered all three deals. “It’s a testament to the stellar attributes of a development site within the Orchard locale, which is highly sought-after by developers looking to ride the next wave of rejuvenation,” says Lake.

The Concorde Hotel & Shopping Centre site presents an opportunity for an incoming developer to create “an iconic and dynamic space that will anchor and accelerate the rejuvenation of Orchard Road”. He anticipates interest in the site from major local and regional developers, particularly those with expertise in the hospitality sector.

While it is currently zoned for “Hotel” use, it is also ideal for a mixed-use and integrated development, says Lake. However, this is subject to URA approval. The tender will close on October 16th, 2024.