Concorde Hotel and Shopping Centre En Bloc Sale 2024
A Major Opportunity in Orchard Road’s Prime Real Estate
Concorde Hotel and Shopping Centre, a well-known property located in the heart of Orchard Road, has been put on the market for a collective sale with a guide price of S$820 million.
This landmark property, majority-owned by Ong Beng Seng’s Hotel Properties Ltd (HPL), offers an unparalleled redevelopment opportunity in one of Singapore’s most prestigious districts.
Situated at 100 Orchard Road, the Concorde Hotel and Shopping Centre occupies a sprawling 99,623 square feet site, strategically zoned for hotel use with a height control of up to 10 storeys.
The property currently comprises a three-storey retail podium and a 407-room hotel, making it a versatile site with immense potential for redevelopment into a mixed-use project.
The guide price of S$820 million translates to approximately S$1,801 per square foot per plot ratio (psf ppr).
This valuation includes a significant premium of S$213.1 million, necessary for topping up the lease to a fresh 99-year tenure.
The calculation assumes a redevelopment plan that allocates 40 percent of the gross floor area (GFA) to hotel use, another 40 percent to residential units, and the remaining 20 percent to commercial spaces.
Strategic Redevelopment of Concorde Hotel and Shopping Centre Set to Revitalize Orchard Road
In 2019, the Singapore Tourism Board, URA, and the National Parks Board announced a significant plan to rejuvenate Orchard Road.
One of the proposed initiatives includes pedestrianizing a section of the road to connect Istana Park, near Concorde Hotel and Shopping Centre, with Dhoby Ghaut Green and the open space at Plaza Singapura.
Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore, highlighted the strategic importance of Concorde Hotel and Shopping Centre, noting its prime location as a pivotal gateway project that will link Dhoby Ghaut to the upper stretch of Orchard Road.
Lake emphasized that the prime property has been a significant landmark on Orchard Road for decades, and its redevelopment will mark the beginning of a new phase of growth and revitalization for the area.
He also mentioned that an outline planning application for a 10-storey mixed-use redevelopment, including hotel, commercial, and residential components, has already been submitted to the authorities.
The development baseline stands at 539,719 square feet, with a plot ratio of 5.41, slightly below the approved master plan plot ratio of 5.6.
Lake further suggested that the buyer might consider submitting an alternative planning application for a different use mix.
Most En Bloc Owners Would Like To Know:
What Happen If Developer Bid Below the Reserve Price (See En Bloc Sale Process)
HPL’s Dominant Stake and Market Position
HPL, which owns more than 80 percent of the entire property, stands to gain over S$650 million if the sale proceeds at the guide price.
The group’s substantial ownership includes the hotel and 63 out of 97 strata retail units, making it a key player in this en bloc sale.
Individual shop owners could receive payouts ranging from S$746,000 to S$12.1 million, depending on the size and value of their units.
The commercial property, formerly known as the Meridien Hotel, has a rich history dating back to its acquisition by an Ong Beng Seng-led consortium in 1989 for S$180 million.
Since rebranding as Concorde Hotel Singapore in 2008, the site has remained a central feature of Orchard Road, contributing to the vibrancy of Singapore’s prime shopping and hospitality district.
Orchard Road’s Continuing Transformation
The sale of Concorde Hotel and Shopping Centre comes at a time when Orchard Road is undergoing significant transformation.
Recent high-profile transactions, such as the sale of Delfi Orchard for S$439 million and Ming Arcade for S$172 million, highlight the sustained interest in Orchard Road’s commercial real estate market.
However, not all attempts have been successful; for instance, Far East Shopping Centre’s en bloc sale earlier this year fell through.
The strategic location of Concorde Hotel and Shopping Centre positions it as a key gateway project that could play a pivotal role in connecting Dhoby Ghaut to the upper stretch of Orchard Road.
With the Urban Redevelopment Authority (URA) having already approved an outline planning application for a 10-storey mixed-use development, the site is primed for a new chapter in its storied history.
The tender for Concorde Hotel and Shopping Centre closes on October 16 at 3 pm.
Given its prime location, historical significance, and the ongoing revitalization of Orchard Road, this en bloc sale presents a rare opportunity for developers to create a landmark project that could redefine one of Singapore’s most iconic districts.
As interest in Orchard Road continues to grow, the outcome of this sale will be closely watched by market observers and developers alike.