OCBC said to be seeking buyer for Mt Elizabeth property

The property could be worth at least S$2,500 psf on approved GFA, assuming it is rezoned for hotel development


Thu, Apr 04, 2019


OVERSEA-CHINESE Banking Corporation (OCBC) is looking to sell a 22-storey freehold serviced-residence development at 2, Mount Elizabeth Link, sources told The Business Times.

The district 9 property housing 72 serviced apartments is leased to Frasers Hospitality, which operates it as Fraser Residence Singapore.

OCBC has appointed Cushman & Wakefield as the exclusive marketing agent to find a buyer for the property. When contacted, the property consulting group's executive director of capital markets Shaun Poh confirmed the appointment, but declined to comment further.

OCBC also declined comment.

The property's existing gross floor area of about 104,400 sq ft (subject to a final survey) is around 2.95 times the site's land area of 35,385 sq ft. This is higher than the 2.8 plot ratio indicated for the residential-zoned site in Master Plan 2014 and Draft Master Plan 2019.

Chee Hok Yean, president for the Asia-Pacific at HVS (an American advisory firm specialising in hospitality assets), estimated that the property could be worth at least S$2,500 per square foot on approved gross floor area, inclusive of any development charge (DC) payable, on the assumption that approval is granted to rezone the site for hotel development.

Hence, based on the existing gross floor area, the buyer could pay at least S$261 million, inclusive of any DC.

Located on a rectangular plot at the junction of Mount Elizabeth Link and Cairnhill Road, the property is a stone's throw from Mount Elizabeth Hospital.

OCBC is understood to have completed the existing development on site about two decades ago.

The property was previously known as The Compass At Elizabeth, and later on, as Somerset Compass when it was being managed by The Ascott Limited.

In January 2011, OCBC leased the asset for a seven-year term to Frasers Hospitality, which spent S$6.5 million to spruce up the place, it was reported.

The lease has been renewed for a further two years till January 2020, The Business Times understands.

Earlier this month, Frasers Hospitality opened Fraser Residence Orchard at 31 Paterson Road. The hospitality arm of the listed Frasers Property (formerly known as Frasers Centrepoint Ltd) is managing this property, which has 115 serviced residences, for Bukit Sembawang.

The property is near the upcoming Orchard station on the Thomson-East Coast Line.