JTC sells its hospitality project in the Punggol Digital district

The sale of a 200-room hotel project, which is expected to be finished in 2024, is planned for the Punggol Digital District.

The development, currently in construction within a sprawling new business campus that covers 50 acres, will come with a 60-year lease. JTC announced on April 29, that the development will become a new business park in Singapore’s intelligent and green district.

The development is situated on an area of 8,140 square metres site. It is being marketed for sale, with vacant possession as part of a core-and shell model in which the owner of the building designs and constructs the foundation of the building, as well as the exterior elements. Tenants are responsible for the fitting-out of the building prior to when it can be used as a hotel or serviced residence. hotel.

The first PDD hospitality business will be in Coney Island and overlook Serangoon Reservoir.

The property is being advertised by JLL’s senior vice president of investment sales, Julien Naouri.

In response to a question about what the minimum bid price was, Naouri said bidders can “develop their own financial analysis” and then submit an expression of interest accordingly.

He noted that the core and shell model “offers the prospective investors” to customize their property to suit their requirements and branding preferences.

JTC is accepting expressions of interest in the acquisition, fit-out and operating of a hotel or serviced apartments. The exercise ends on Tuesday (Apr 30) at 1pm.

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The building is scheduled to obtain its Temporary Occupation Permit by the fourth quarter of 2024. JTC said in response to queries by The Business Times.

PDD will open progressively from the second quarter of 2024 and will include retail, dining and lifestyle facilities .

It will contain more than 2 million square feet of business park and office space as well as the Singapore Institute of Technology’s new campus, and is expected to create 28,000 jobs and bring around 12,000 students.

It is also within proximity of the Seletar Aerospace Park and the Tampines regional hub.

UOB is the biggest commercial investor in the district has committed S$500 million to build the 300,000 square feet of space which will house up to 3,000 people in technology, innovation and other digital positions. The centre will be finished in 2026.

JTC introduced a similar model in Changi Business Park 15 years ago.

In 2008, JTC awarded a 60-year leasehold parcel of land within the Changi Business Park to Frasers Centrepoint and Ascendas Land (Singapore) for S$150.8 million, or S$119 for each square foot, per plot ratio. The site was used as a hotel, retail and business parks project.

In 2012 the 313-room Capri by Fraser hotel in Changi City opened. A mall named Changi City point was also built within the estate of a business park.

In 2015, Frasers Property Ltd bought the hotel with 313 rooms from the joint venture for S$203.4 million. The business park was transferred to Ascendas Reit and the mall was sold to Frasers Centrepoint Trust.

In 2023, FCT sold Changi City Point for S$338 million, reportedly to a Chinese investor.

BT published in the month of January 2024 that Frasers had put the Capri hotel up for sale. Joint ventures (JVs) involving entities comprised of two Hong Kong parties – Far East Consortium International and Atelier Captial Partners – are said to be conducting the exclusive due diligence on a possible purchase. The JV was said to include a US-based investor TPG Angelo Gordon. The pricing for the hotel was estimated to be approximately S$170 million.

There’s at the very least one other hotel in Changi Business Park. Park Avenue Changi opened in 2013 and has 171 rooms. It also offers 80 apartments that are serviced.


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