Hotel Properties Limited (HPL), through its wholly-owned subsidiary, Luxury Peak, has received approval from the Strata Titles Board, to go ahead with the acquisition of the entire strata area of the Concorde Hotel & Shopping Mall at $821 million.
HPL, through its five wholly-owned subsidiaries, has already owned 95.4% of the property’s strata area for “many years”. The strata area comprises the 407-room Concorde Hotel from levels four to nine of the building as well as 63 of the 98 strata shops in the three-storey retail podium. The total area comes up to 108,510 sq ft.
The remaining strata area will cost around $74.84 million and won’t have any material impact on HPL’s consolidated net earnings per share (EPS) and consolidated net tangible assets (NTA) per share based on HPL’s financial statements for the FY2024 ended Dec 31, 2024.
On Nov 7, 2024, HPL, through Luxury Peak, announced that it acquired Concorde Hotel en bloc for $821 million, which is $1 million above the guide price of $820 million.
The site was launched for tender on Sept 3, 2024.
The sale price works out to $1,804 psf per plot ratio (ppr). This includes the applicable land betterment charge of $213 million based on a redevelopment scheme comprising 40% hotel, 40% residential and 20% commercial use.
See also: City Developments announces divestment of South Beach stake, but should it be Mortlake instead?
Shares in HPL closed 7 cents lower or 1.58% down at $4.35 on June 2.
