Selegie Centre buyer seeks approval to build hotel

Fri, Jun 28, 2019


PEAK Tower Corporation, which is acquiring Selegie Centre in a collective sale, is seeking approval from the Urban Redevelopment Authority (URA) for its plans to build a hotel on the site, which is presently zoned for commercial and residential use.

An earlier application by Peak Tower for a proposed one block, 11-storey hotel on the site and to change the use of the site was turned down by the URA in March. Peak Tower has since submitted an appeal as well as its amended plans to the URA, which is assessing the appeal.

The Business Times understands that the earlier proposal likely faced issues linked to the hotel's coach bay and plans have been tweaked to provide more space for a 40-seater coach to turn into the service road via a two-metre setback to Peak Tower's land. The developer is also looking to implement a motorised bus turntable, which will rotate the coach to facilitate its exit.

Peak Tower is keen to build a 175-180 room microhotel as it offers a more efficient use of space, said chief executive officer, Vinson Keefe Anggasaputro, adding that such hotels cater to all kinds of customers from tourists to businessmen.

If given the green light, Peak Tower plans to approach the Hilton and Marriott groups as a potential hotel operator - in particular, eyeing the microhotel brand, Motto by Hilton, and the affordable-but-edgy Aloft brand by Marriott.

In March this year, it was reported that the freehold Selegie Centre in District 7 had been sold en bloc at its reserve price of S$120 million in its third shot at a collective sale. This translates to a land rate of S$1,942 per square foot per plot ratio (psf ppr).

Peak Tower is backed by the Surabaya-based Anggasaputro family, whose main business is a leading adhesive tape manufacturing company in South-east Asia. The family is now keen to diversify into other areas.

"Singapore seems to be a promising market for property," said Mr Anggasaputro. "We see the Bugis/Bras Basah area as having redevelopment potential as an arts and cultural district."

Located at the junction of Selegie and Mackenzie Roads, the 30-year-old Selegie Centre is a mixed development of 33 shops and 25 apartments. The 10-storey building has a gross floor area of slightly over 60,000 square feet.

BT understands that the sale is expected to be completed by March next year.