The closing of the tender exercise has been extended from 10 December to 12 January 2021, following feedback from interested buyers that they need more time to assess the site.
The closing of the tender exercise for the 106-key Fortuna Hotel at 2 Owen Road has been extended from 10 December to 12 January 2021 after feedback from interested buyers that they need more time to assess the site, revealed exclusive marketing agent CBRE.
Launched for sale on 29 October, the hotel has a guide price of $98.8 million, which works out to about $932,000 per key or $2,060 per sq ft (psf) based on the property’s current gross floor area of 47,990 sq ft.
It occupies an 8,332 sq ft site located at a junction along Serangoon Road and Owen Road. The freehold site is zoned for hotel use under the 2019 Master Plan with a gross plot ratio of 3.0.
CBRE noted that the seven-storey hotel offers 106 rooms, measuring between 17 sq m and 49 sq m.
“The extension follows feedback from interested buyers that they need more time to study the site and to conduct due diligence prior to putting in a binding bid for the property,” said Clemence Lee, Senior Director of Capital Markets at CBRE.
He revealed that CBRE has fielded over 80 enquiries since the launch, with more than 20 site inspections. Buyers included hotel operators, funds, co-working operators, high net worth individuals and family offices, he noted.
“The overwhelming market interest for the subject property could be due to many strong attributes including a coveted freehold tenure, a palatable investment quantum of below $100 million for over 100 keys, a MRT station right next door and the possibility to increase room count or to convert to co-living space or a serviced apartment,” added Lee.
Situated next to Farrer Park MRT station, Fortuna Hotel is connected to the rest of the island via Central Expressway, Pan Island Expressway and East Coast Parkway. It is also a 10-minute drive to Raffles Place and Orchard Road and a 20-minute drive to Changi Airport.
Nearby landmarks include Uptown @ Farrer and Connexion.