K Hotel in Geylang going for $25 mil

By
/ EdgeProp Singapore
|
May 3, 2019 2:26 PM SGT
A 56-room hotel in Geylang has been put up for sale for $25 million, according to marketing agent JLL. The asking price translates to about $2,050 psf on the estimated gross floor area (GFA) of about 12,238 sq ft, or about $450,000 per key.
The eight-storey freehold K Hotel, at 44 Lorong 6 Geylang, sits on a 3,725 sq ft plot. Based on the GFA, the gross plot ratio works out to about 3.29. Under the 2014 Master Plan, the site is zoned for commercial/institution use with a gross plot ratio of 2.8.
K Hotel at 44 Lorong 6 Geyland (Picture Credit: JLL)
The property is located off Mountbatten Road and a 10-minute walk from the Kallang MRT station, and is close to the Stadium and Mountbatten MRT Stations. It is linked to Geylang Road and Sims Road, as well as Nicoll Highway, Kallang-Paya Lebar Expressway, East Coast Parkway, and the Pan-Island Expressway.
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“Freehold hotels with a palatable investment quantum of under $50 million in Singapore are tightly held and very rarely put onto the market. We expect strong interest from real estate funds, developers, family offices, and hotel operators,” says Clemence Lee, senior director of capital markets at JLL Singapore.
He also notes “elevated buying interests” for hotels and hotel sites in Singapore in the past year, including the collective sale of Golden Wall Centre for $276.2 million ($2,331 psf ppr) last November. Recent comparable transactions of freehold hotels included Wangz Hotel, which was sold for $46 million ($1.12 million per key), and Wanderlust Hotel, which was sold at $37 million (S$1.28 million per key), he says.
Foreign buyers are eligible to purchase the building, and no additional buyer’s stamp duty or seller’s stamp duty is imposed on the purchase. The expression of interest closes on June 7.