Porcelain Hotel relaunched for sale at lower guide price of $68.8 mil

/ EdgeProp Singapore
November 16, 2020 5:57 PM SGT
SINGAPORE (EDGEPROP) - The Porcelain Hotel at 48, 49, and 50 Mosque Street in Chinatown has been relaunched for sale at a guide price of $68.8 million. According to CBRE, the sole marketing agent, the property will be offered by an expression of interest (EOI) exercise.
This is the second time the 99-year leasehold hospitality asset is on the market this year. The owner also holds the shophouse properties at 46 and 47 Mosque Street, and all five properties were put up for sale in February at a guide price of $115 million, which translated to $2,950 psf on a gross floor area (GFA) of 38,686 sq ft. The sale closed in March and CBRE was the marketing agency.
The property at 48, 49, and 50 Mosque Street enjoys a 40m road frontage along Mosque Street and sits on a 6,033 sq ft plot. The site is zoned “Commercial” under the 2019 Master Plan. The hotel has a GFA of about 23,401 sq ft across four floors with room sizes of 86 to 312 sq ft. The property also features a 2,500 sq ft spa outlet on the ground floor.
Strong shophouse buying interest and a low interest rate environment contributed to the sales relaunch. (Picture: CBRE) - EDGEPROP SINGAPORE
Strong shophouse buying interest and a low interest rate environment contributed to the sales relaunch.
The latest guide price of $68.8 million for 48, 49, and 50 Mosque Street translates to about $820,000 per key, or $2,986 psf on GFA. Interested buyers have the option of acquiring the property with vacant possession or a sale-and-leaseback arrangement, says CBRE.
According to Clemence Lee, senior director of capital markets at CBRE Singapore, the property received “multiple offers” during the previous sales launch. “But March was when the Covid-19 situation intensified, resulting in higher levels of uncertainty ahead, and the owner hence decided to withdraw the property from the market,” says Lee.
He says that there has been strong interest in shophouse assets over the past few months, and particularly for those located in the CBD. Buying interest has come from boutique real estate funds, family offices, and high-net-worth individuals, and shophouse prices have proven resilient given the limited supply, says Lee.
“Against this background, coupled with the favorable low interest rate environment as well as the improvement and stability of the current Covid-19 situation, we feel that it is now an opportune time to relaunch the Porcelain Hotel,” he adds.
The EOI exercise will close on Dec 16.
Check out the latest listings near Porcelain Hotel, Mosque Street, Chinatown MRT