SINGAPORE, 27 February 2020 – EDMUND TIE and CBRE, as the joint exclusive marketing agent, are pleased to present for sale The Porcelain Hotel, a 138-key boutique hotel located in the heart of Singapore’s bustling Chinatown.
Housed in a row of adjoining conservation shophouses located at 46 to 50 Mosque Street, The Porcelain Hotel enjoys over 55-metre wide road frontage. The 99-year hotel occupies a land area of 10,143 sf and an estimated gross floor area of 38,686 sf. Spanning four storeys, The Porcelain Hotel offers 138 rooms with majority of the room sizes ranging from 86 sf to 172 sf and a selection of larger units up to 452 sf.
Based on the Master Plan 2019, the site is zoned “Commercial”. The purchaser has the option of an acquisition with vacant possession or a sale and leaseback arrangement. The property has excellent specifications such as concrete floorings and regular layout.
The guide price for the property at S$115 million, reflecting approximately S$830,000 per key or S$2,950 psf on the gross floor area, compares favorably to other recent transactions of hotels and shophouses1.
Mr Clemence Lee, Senior Director, Capital Markets, CBRE, said: “Boutique hotels in Singapore with a palatable investment quantum are tightly held and seldom put into the market. With the recent spike in buying interest for hotels and hotel sites in Singapore, we expect strong interest from real estate funds, developers, family offices, and hotel/co-living operators. With a leaseback arrangement in place, the incoming buyer will have some time to plan how they would like to carry out asset enhancement initiatives to refurbish and reposition the property. The new owner will have the flexibility to either self-manage the hotel or engage an independent operator.”
“Furthermore, as one of the top tourist destinations in Singapore, Chinatown enjoys high shopper footfall around the clock. To capitalize on the crowd, the potential buyer can explore repositioning and converting the ground floor into F&B use and curating an exciting tenant mix featuring restaurants, wine bars, cafes and bistros,” Mr Lee added.
Ms Swee Shou Fern, Executive Director, Investment Advisory, EDMUND TIE, said: “The Porcelain Hotel presents a rare opportunity for one to own a row of shophouses with hotel approval in Chinatown, where new application for hotel use in this area will generally not be supported. Strategically located in the heart of Chinatown and within an easy 5 to 10 minutes’ stroll to the CBD, the property is ideally positioned to cater to both business travelers and tourists.
“With a strong pipeline of new tourism offerings as well as rejuvenation of existing attractions, the appeal of Singapore as a regional tourist destination in South-east Asia is poised to increase over time. The mid-to-long term outlook for Singapore’s hospitality property market is favourable given the low hotel supply pipeline over the next three to four years,” Ms Swee added.
The property is conveniently located within a short 5-minute walk to Chinatown MRT station and is readily accessible via public transportation along New Bridge Road and Cross Street. It is easily accessible to other parts of Singapore via the Central Expressway (CTE), Marina Coastal Expressway (MCE) and Ayer Rajah Expressway (AYE). Orchard Road is a short 10-minutes’ drive, while Changi International Airport is a short 20-minutes’ drive.
Located in the Kreta Ayer conservation area, Mosque Street boasts of a rich history. Today, it is a popular street which houses a plethora of shops and stalls featuring restaurants serving authentic Chinese cuisine; retail shops selling souvenirs, antiques, clothing, jewellery and cultural knick-knacks, as well as various accommodation options such as boutique hotels and backpacker hostels.
As the property sits on land zoned for commercial use, foreigners are eligible to purchase the building. There is also no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the property.
The property is being marketed through an Expression of Interest exercise, which will close on Friday, 27 March 2020, at 3pm.
Notes:
- Interest for hotels and hotel land has been strong over the past year. Recent hotel land transactions include Min Yuan Apartments, which was transacted at S$160.5 million (S$2,613 psf ppr), Darby Park Executive Suites, which was transacted at S$160 million (S$2,754 psf ppr) and Golden Wall Centre, which was transacted at S$276.2 million (S$2,721 psf ppr). Recent boutique hotel transactions include Wangz Hotel, which was sold at over S$60 million (S$1.46 million per key) and Wanderlust Hotel, which was sold at S$37 million (SS$1.28 million per key).
Recent shophouse transactions in the Chinatown precinct include 76 Pagoda Street at $13.3m ($3,500 psf) and 31 Pagoda Street at $16.25m ($4,779 psf).
ENDS
For further information, please contact:
Wong Wei Chen
Senior Manager, Corporate Communications
O: +65 6393 2369
Email: weichen.wong@etcsea.com
Amanda Teng
Executive, Corporate Communications
O: +65 6393 2510
Email: amanda.teng@etcsea.com
About EDMUND TIE
EDMUND TIE is a full-service, real estate consulting firm with more than 400 skilled professionals in the region. It is headquartered in Singapore and supported by offices in Kuala Lumpur, Malaysia and Bangkok, Thailand. We offer a comprehensive suite of agency and professional services including investment advisory, business space and retail, residential agency, auction and sales, valuation advisory, statutory valuation and property tax advisory, research and consulting, property management, and hospitality management. For more information, please visit www.etcsea.com.