Hotel Properties

[Louhan]

I'm still holding HPL - I'm not accepting the offer. Wait for the better times to come.

Unlocking HPL value takes demolishing and construction.

So will take at least 3 years.

I still believe the car park will be gone. To be replaced by a multiple storey underground carpark and retail/hotel above.


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yes and by then, hopefully we can see the prices at $5-6

[investor2014]

I'm still holding HPL - I'm not accepting the offer. Wait for the better times to come.

Unlocking HPL value takes demolishing and construction.

So will take at least 3 years.

I still believe the car park will be gone. To be replaced by a multiple storey underground carpark and retail/hotel above.


Sent from my iPhone using Tapatalk

yes and by then, hopefully we can see the prices at $5-6

yes lets wait for better times!

[investor2014]

artcile back in 2011:

Ming Arcade at 21 Cuscaden Road (below) just off Orchard Road has been put up for collective sale through tender, with Jones Lang Lasalle (JLL) as the sole marketing agent. Considered the first collective sale of a commercial property rolled out this year, Ming Arcade currently has 88 commercial or retail strata units with sizes ranging from 140 to 620 sq ft.

The commercial zoned site has an approved gross floor area (GFA) of 55,046 sq ft, a gross plot ratio of 4.2+ and an allowable building height of 20 storeys. JLL says possible redevelopment options include small office home office medical suites, office and retail developments, with relevant approval by the authorities, and payment of development charge.

“There’s a huge potential for medical suites, as those at Mount Elizabeth nearby and also at Gleneagles have already been transacted at prices above $5,000 psf,” says Stella Hoh, head of investments at JLL. “The site offers a developer the rare opportunity to acquire a piece of freehold land within the prime Orchard Road shopping belt.” The affordable quantum is also attractive to small and mid-sized developers, as the indicative price is said to be upward of $130 million, or $2,360 psf per plot ratio, based on the approved GFA. The tender closes at 3pm on Sept 1.

[investor2014]

from IFA report, page A8-22.

vln for hpl house, which is opposite ming arcade is at $108 million.GFA for hpl house is around 80,000 sf. this translates to around $1350 psf.

this is almost $80 million or $1000 psf lower than the asking price for ming arcade en bloc back in 2011.

some food for thought.

[investor2014]

in LCD's case, the buyout offer was 17 cents.with KWS stepping in to buy, the prices for LCD has gone up to reach NAV of 27 cents.

unfortunately, hpl is still not able to reach its RNAV of more than $5. seems like such values will either take time or another big investor before being able to be achieved. guess thats where patience becomes important.

[investor2014]

from IFA report, page A8-61.

valuation for forum shopping mall: $408 million.

GFA is around 265,000 sf.==> around $1540 psf.

seems a bit on the low side for a freehold orchard road property at $1540psf?

[investor2014]

article from oct 2012:

Tanglin Shopping Centre (pictured) is back on the market for another attempt to be sold en-bloc, following a failed effort last year, reported AsiaOne.

The development’s 173 owners are expected to meet next month to elect a sale committee that will engage a property agent and lawyer for the sale.

During its first attempt, Tanglin Shopping Centre had a price tag of S$1.25 billion, or about S$4,000 psf of the potential gross floor area (GFA), should the 68,512 sq ft freehold site be redeveloped.

The site’s prime location will likely attract strong interest from developers “but every developer will have his own ideas of what a reasonable price is,” noted Nicholas Mak, Research Head at SLP International.

“The market has not changed that much from the last time they tried — if they're still going to ask that price, they can expect the same kind of response,” he added.

According to Len Hoo, member of the pro-tem sale committee, the property’s owners wanted to sell the property as they “cannot compete with the newer shopping centres”.

Anil Bhatia, also member of the committee, said, “People want to go to places with a supermarket, a foodcourt — we don’t have that here.”

Tanglin Shopping Centre features mainly speciality stores, like jewellery and art shops.

Meanwhile, Mr Hoo, Managing Director of family firm C. T. Hoo, owner of an office unit and a jewellery shop in the centre, said the maintenance cost is another issue, as “the mall is over 40 years old and costs keep on rising — air-conditioning, the lift, escalators, electrical costs.”

[investor2014]

article from oct 2012:

Tanglin Shopping Centre (pictured) is back on the market for another attempt to be sold en-bloc, following a failed effort last year, reported AsiaOne.

The development’s 173 owners are expected to meet next month to elect a sale committee that will engage a property agent and lawyer for the sale.

During its first attempt, Tanglin Shopping Centre had a price tag of S$1.25 billion, or about S$4,000 psf of the potential gross floor area (GFA), should the 68,512 sq ft freehold site be redeveloped.

The site’s prime location will likely attract strong interest from developers “but every developer will have his own ideas of what a reasonable price is,” noted Nicholas Mak, Research Head at SLP International.

“The market has not changed that much from the last time they tried — if they're still going to ask that price, they can expect the same kind of response,” he added.

According to Len Hoo, member of the pro-tem sale committee, the property’s owners wanted to sell the property as they “cannot compete with the newer shopping centres”.

Anil Bhatia, also member of the committee, said, “People want to go to places with a supermarket, a foodcourt — we don’t have that here.”

Tanglin Shopping Centre features mainly speciality stores, like jewellery and art shops.

Meanwhile, Mr Hoo, Managing Director of family firm C. T. Hoo, owner of an office unit and a jewellery shop in the centre, said the maintenance cost is another issue, as “the mall is over 40 years old and costs keep on rising — air-conditioning, the lift, escalators, electrical costs.”

tanglin shopping centre asking for $4000 psf.

hpl's forum shopping mall valued at $1540psf- less than half of the 4000psf.

[investor2014]

recent shop units have transacted at more than 2400 psf at ming arcade.

if we use a value of $2000 psf for forum, it will translate to an additional valuation of around $130 million or extra $0.25 per share.
if we use $2500 psf, it will be around $260 million more or around $0.5 per share.

Grand Park Orchard hotel including its retail podium Knightsbridge are said to have been sold at slightly over $1.15 billion in 2013

[investor2014]

article from 2013:

Grand Park Orchard hotel including its retail podium Knightsbridge are said to have been sold at slightly over $1.15 billion. The freehold property is being sold by Park Hotel Group to Bright Ruby Resources, a Singapore-incorporated vehicle controlled by the Du family of China.

The buyer's diversified businesses include shipping, resources and property. Bright Ruby has acquired several commercial properties in Australia, though this is believed to be its first major investment in the Singapore real estate sector.

The cash-flush group has been doing due diligence for the acquisition of Grand Park Orchard for several weeks.

Seller Park Hotel Group is expected to continue managing the 308-room hotel.

Jones Lang LaSalle group is understood to have brokered the transaction.

Market watchers say the sale is the biggest ever private-sector property transaction in Singapore - excluding asset sales undertaken as part of real estate investment trust floats, and Government Land Sales and other public sector-originated deals.

The deal also sets a benchmark price for Singapore hotel rooms.

Besides the 308-room hotel, the transaction includes about 74,000 sq ft net lettable area of retail space.

Assuming the retail space is valued at $9,500 per square foot, the hotel would be valued at almost $1.5 million per room. A higher price of $10,000 psf for the retail space would translate to a hotel pricing of close to $1.4 million per room.

Either way, this busts the previous highest Singapore hotel pricing of around $1.1 million per room.

The price being paid by Bright Ruby is understood to translate to a net yield of just over 4 per cent.

Current average room rates at Grand Park Orchard are said to be around $300 per night, with occupancy rates of more than 90 per cent.

Knightsbridge has been leased to retailers such as Abercrombie & Fitch, Topshop/Topman, Brooks Brothers, Tommy Hilfiger, Dickson Watch & Jewellery, and The Hour Glass at monthly rents said to be in the $25-35 psf band.

Grand Park Orchard is the second property that Park Hotel Group has sold in Singapore.

The first was the Park Hotel Clarke Quay, which it sold in late March for $300 million or $893,000 per room to Ascendas Hospitality Trust.

That deal entailed a contract to lease back the hotel to a unit of Park Hotel Group for 10 years with an option for a further five-year term.

The rental income will comprise an initial fixed rent component of $11.5 million for the first year subject to an escalation of 3 per cent per annum and variable rent components tied to the hotel's performance.

The 336-room Clarke Quay property is on a site with a balance lease term of about 93 years.

The group is now left with one other hotel in Singapore, Grand Park City Hall in Coleman Street. A few potential buyers are understood to have studied the asset but a deal has yet to materialise.

Set up in Hong Kong in 1961 by three sibilings of the Law family - Raymond, Lobo and Elizabeth - Park Hotel Group moved its headquarters to Singapore in 2005.

Last year, the group clinched contracts to manage two hotels in Singapore being developed by third parties - one being developed by Chip Eng Seng next to Ikea in Alexandra Road, and the other by RB Capital above Farrer Park MRT Station in Little India.