Lion City Hotel site up for sale
Freehold plot may get bids of $300m for residential, commercial development
The site of the Lion City Hotel and neighbouring Hollywood Theatre, near Paya Lebar MRT station, is set to be redeveloped for both residential and commercial use. -- PHOTO: KNIGHT FRANK
By Esther Teo
THE iconic Lion City Hotel and the adjoining Hollywood Theatre site have been put up for sale and could be in line for redevelopment into swanky new homes and shops.
The 147,909 sq ft freehold plot, which has been launched for tender with a closing date of Jan 6, is expected to attract bids topping $300 million from developers.
Once sold, it is likely that the land will host retail shops or offices and more than 200 new homes - the first time a large project of more than 100 units has been developed in the area since Sims Residences and Vistaya View were completed in 2003.
Such a project will further boost the rejuvenation of the area and is in line with the Government's plans for Paya Lebar Central to be developed into a 'lively, pedestrian-friendly commercial hub with a distinct cultural identity'.
Including an estimated development charge of $77.8 million payable for the re-zoning on top of the projected price of $300 million, developers can expect to foot $753 per sq ft (psf) per plot ratio.
The site, located within 350m of Paya Lebar MRT Station, is zoned for hotel and commercial use in the 2008 Masterplan.
But the Urban Redevelopment Authority has granted approval for it to be redeveloped into a mix of residential and commercial developments up to a gross plot ratio of 3.39, according to joint marketing agents Landmark Property Advisers and Knight Frank.
The plot consists of 243,805 sq ft of residential gross floor area (GFA) and 264,119 sq ft of commercial GFA, which will allow for a shopping centre similar to that of Katong Mall and some 240 apartments of an average size of 1,000 sq ft, the marketing agents said.
The GFA, however, includes a substation site of about 2,048 sq ft currently owned by SP PowerAssets.
Mr Colin Tan, research and consultancy director of property firm Chesterton Suntec International, said the residential segment is likely to perform well since it is close to the MRT station. The long-term potential of the Paya Lebar area might also appeal to buyers, he added.
Paya Lebar Central is one of the three commercial hubs selected to provide alternative locations for businesses and to bring jobs closer to homes as part of the Urban Redevelopment Authority's decentralisation strategy. The other two are Jurong Lake District and Kallang Riverside.
The Lion City Hotel was built by the late property magnate Wee Thiam Siew some 40 years ago and the Wee family has been operating it ever since.
The old Hollywood Theatre used to be the location of City Harvest Church, but it has since been leased to Sheng Siong supermarket.
With the site now being allowed to switch to residential and commercial uses, the family has decided to divest this asset as property development is not their core business, the statement from the marketing agents said.
'We expect keen interest from developers as it is seldom Singapore has a freehold site in single ownership suitable for large-scale development being offered for sale,' the marketing agents added.
esthert@sph.com.sg
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