CBRE has been appointed as the exclusive marketing agent for the Hotel Clover at 7 Hongkong Street, a boutique hotel with 27 rooms. The property is currently on the market with a guide price of $27 million. Additionally, CBRE is also handling the sale of a nearby commercial building at 36 Hongkong Street, which has a guide price of $22.6 million.
The Hotel Clover is a six-storey building located on a 1,701 sq ft plot that is zoned for hotel use and has a plot ratio of 4.2 under the latest Master Plan. The property has a remaining land tenure of approximately 89 years and a total floor area of 7,142 sq ft. This equates to a price of $3,780 per sq ft on the floor area.
On the other hand, the commercial building at 36 Hongkong Street is a five-storey building situated on a 1,733 sq ft plot that is zoned for commercial use and also has a plot ratio of 4.2 under the Master Plan. The property has a remaining land tenure of 93 years and a total floor area of 7,279 sq ft. The guide price for this building is $3,105 per sq ft. Currently, the building is fully leased to a bridal shop on the ground floor and offices on the upper floors.
According to Clemence Lee, the executive director of capital markets at CBRE Singapore, both of these properties have relatively attractive remaining land tenures compared to other 99-year leasehold properties in the CBD area. This makes them ideal for owner-occupiers who are looking for a flagship asset at a reasonable price with naming rights for their exclusive operations.
As both properties are classified as hotel and commercial properties, foreigners and companies are eligible to purchase them without incurring Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) on the transactions.
Located in the vibrant Clarke Quay area, the properties are surrounded by popular restaurants, bars, boutique hotels, and fitness studios. They are also conveniently close to Clarke Quay MRT Station on the North-East Line.
Lee also highlights the potential for rental growth and capital appreciation in the medium to long term, with the upcoming completion of the $62 million asset enhancement project at CQ@Clarke Quay and the development of two large-scale integrated developments, Canninghill Piers and Union Square.
Both properties will be sold through an expression of interest exercise, which will close on March 26. Interested parties can find out more about these properties by visiting CBRE’s website or checking out the latest listings for commercial real estate properties.
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