The Business Times, 27 Apr 2022, Wed 3:27 pm
By Vivienne Tay
A FREEHOLD land parcel on Devonshire Road in District 9, with approval for hotel use, is being put on the market again, at an indicative price of S$50 million this time.
The site, currently vacant land spanning 5 plots at 6, 8, 10 Devonshire Road and 130 Killiney Road, has a combined site area of about 498.9 square metres (sq m) or 5,370 square feet (sq ft). It is zoned for hotel use with a gross plot ratio of 2.8 under the Urban Redevelopment Authority’s Master Plan.
The seller of the development has obtained approval for a 6-storey hotel development with 44 guest rooms, each having an average room size of about 17 sq m. The approved gross floor area is about 15,000 sq ft, ERA noted.
The site, which was an asset named in a liquidation case several years ago involving Ivy Lee Realty, had been put on the block under a mortgagee sale in a tender that closed two months ago in February. The tender closed with no sale concluded.
Ivy Lee Realty had planned to develop 8 Devonshire Road into a 30-unit condominium named Devonshire 8 in 2012, but was sued for unpaid debt in 2015.
The company was wound up, the project abandoned, and Devonshire 8 sold by liquidators for S$25.9 million in 2016.
Approval was subsequently granted by URA for a serviced apartment project on the site, but the land remains vacant today.
The site is a 10-minute walk to the Orchard Road shopping belt, and is near Somerset MRT station as well as malls such as 313@somerset, 111 Somerset, Orchard Central and orchardgateway.
ERA Realty managing director of capital markets and investment sales Steven Tan said: “We believe with the relaxation of the safe distancing measures and opening up of border controls, the hotel investment sales market will see more activity in future, like what we have seen for the commercial and residential sectors,” he added.
Thus, ERA Realty expects “keen interest” from property developers, hospitality operators and institutional funds, added ERA Realty director of capital markets and investment sales Donald Goh.
The Expression of Interest exercise will start on Apr 28 and close on Jun 9 at 4 pm, sole marketing agent ERA Realty said on Wednesday (Apr 27).
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