Two new hotel sites on H1 2010 reserve list

Source : Business Times – 7 Nov 2009

TWO new hotel sites – one of which is Ogilvy Centre, a conservation building opposite Lau Pa Sat – have made it to the government’s H1 2010 reserve list. But there are no new commercial sites on the list. And there are neither hotel nor commercial sites on the confirmed list for H1 2010.

Still, according to the Urban Redevelopment Authority, there’s ample supply of sites for commercial and hotel developments in the reserve list.

Choy Chan Pong, URA senior group director for land sales and administration, pointed out that about 4.5 million square feet of commercial space will continue to be made available through the reserve list of H1 2010, including about 1.5 million sq ft that can potentially be generated from a white site at Ophir Road in the Bugis area and nearly 690,000 sq ft from a white site in the Jurong Gateway area.

CB Richard Ellis director (research) Leonard Tay said that recovery in the office market is at the incipient stage. ‘If the pace of recovery quickens, the authorities have the option of adding some confirmed list sites for second half 2010 to ensure timely supply of office buildings from 2013 onwards.’

CBRE’s figures show that between now and end-2014, about 7.72 million sq ft of net lettable area of offices are slated for completion.

‘One should not underestimate the pace at which the current supply will be absorbed when the market recovers in the medium term,’ said Mr Tay. ‘For instance, the annual takeup for 2000 was a very significant 4.22 million sq ft on the back of recovery after the Asian crisis.’

Cushman & Wakefield’s Singapore managing director, Donald Han, said: ‘It takes about 2 1/2-3 years from the time a developer bids for an office site to finishing the project, and probably a good time to buy sites would be in H2 2010 to get projects ready for the post-2013 period.’

Property market players were excited about Ogilvy Centre, at the corner of Robinson Road and Boon Tat Street, being added as a hotel site with about 70 rooms to the reserve list. The property was built in 1927 and accorded conservation status in February 2000. The building’s facade as well as part of its interior have to be conserved. The government is reviewing whether to sell the site on a 30 or 60-year lease.

‘This is not your typical hotel site. It’s in the financial district and can be positioned as a luxury property like an Armani Hotel,’ Mr Han said.

The other new hotel plot on the reserve list, at Robertson Quay, can generate some 350 rooms. The Ministry of National Development’s H1 2010 reserve list can potentially generate 4,515 hotel rooms.