The iconic Concorde Hotel & Shopping Centre at 100 Orchard Road has officially been launched for collective sale, marking its first en bloc attempt. Owned by Singapore-listed Hotel Properties Ltd (HPL), this prime property features 407 hotel rooms spread across the fourth to ninth floors and 63 out of 98 strata shops within the three-story retail podium. Combined, these make up a total strata area of 108,510 square feet.
“The Concorde Hotel & Shopping Centre has been a cornerstone of Orchard Road for years,” says Jeremy Lake, managing director of investment sales & capital markets at Savills Singapore. “Its redevelopment will signal a new chapter of growth and revitalization for the area.”
Savills Singapore, the marketing agent for this property, has set the guide price at $820 million. This includes a bonus gross floor area (GFA) from balconies and a lease top-up premium of $213.1 million, bringing the land rate to $1,801 per square foot per plot ratio (psf ppr).
The property occupies a prime 99,623 square foot corner island plot with a 170-meter frontage along Orchard Road—second only to Ngee Ann City. It boasts four road frontages along Orchard Road, Cavenagh Road, Kramat Lane, and Buyong Road, making it a highly accessible and visible location.
According to HPL’s 2023 annual report, the property, which is zoned “Hotel” with a 10-story height control, has a 99-year lease starting from August 17, 1979. This means there are 54 years remaining on the lease. The site has a verified development baseline of 539,719 square feet, equivalent to a plot ratio of 5.41, slightly below the Master Plan plot ratio of 5.6.
An Outline Planning Application has been submitted to the authorities for a mixed-use redevelopment, which could potentially include 40% hotel, 20% residential, and 20% commercial space. However, this is contingent on the developer paying the $213.1 million lease top-up to extend it to a fresh 99-year term.
“The future development on this site is poised to be a key gateway project that will link Dhoby Ghaut to the upper stretch of Orchard Road,” Lake notes. The property’s strategic location, a mere three-minute walk from both Somerset and Dhoby Ghaut MRT stations, adds to its appeal. Furthermore, it will feature a direct underground pedestrian walkway to the Somerset MRT Station on the North-South Line.
This redevelopment opportunity comes at a time when Orchard Road is undergoing significant rejuvenation. Plans include pedestrianizing a 500-meter stretch in front of the building starting in 2025, and expanding Istana Park to connect it with green spaces at Penang Road Open Space and Dhoby Ghaut Green.
The collective sale of Concorde Hotel & Shopping Centre has sparked interest in nearby properties, with the collective sale committees at United House and Singapore Shopping Centre already gearing up for their own en bloc sales.
In recent years, there have been just three successful collective sales along Orchard Road: Tanglin Shopping Centre for $868 million in February 2022, Ming Arcade for $172 million in December 2022, and Delfi Orchard for $439 million in May 2023. All three deals were brokered by Savills, underscoring the high demand for Orchard Road properties.
For developers, this site presents a rare opportunity to create an iconic mixed-use space that could redefine Orchard Road’s landscape. Interest is expected to come from major local and regional developers, particularly those with expertise in hospitality.
The tender for the Concorde Hotel & Shopping Centre will close on October 16, 2024. For those keeping an eye on developments in this prestigious area, nearby properties like Watten House and Nava Grove are also worth exploring as prime investment opportunities in Singapore’s ever-evolving real estate market.