The website includes Liang Court mall, midscale hotel Novotel Singapore Clarke Quay and serviced dwelling Somerset Liang Court Singapore.
Subject to approval by the authorities, the Liang Court site is going to probably be turned into an integrated improvement with total gross floor area (GFA) of 100,263 sq m.
The planned project will include two residential towers that provide about 700 residential units, a commercial component, an”upper midscale” resort with 460 into 475 rooms, and a 192-unit serviced residence using a resort license.
The proposed mixed-use job will start in phases in 2024.
The new resort will be operated under the Moxy brand by Marriott International if it’s finished around 2025, whereas the brand new serviced residence will continue to keep its Somerset branding once it opens from the next half of 2024.
The deal entails CDL Hospitality Trusts (CDLHT) promoting its entire stake in Novotel Singapore Clarke Quay into the 50:50 CDL-CapitaLand joint venture (JV) entities and CDL.
Ascott Reit said it signed up a put-and-call alternative agreement with CDL to market 15,170 sq m of their website’s GFA for about $163.3 million to CDL, and retain 13,034 sq m of GFA.
The residential and commercial components of the new development is going to be possessed by the 50:50 CDL-CapitaLand JV entities, whereas the serviced house is going to likely be possessed by Ascott Reit. CDLHT will have the resort beneath a forward purchase agreement with CDL.
Ascott Reit said in its filing that it is going to utilize its net profits from selling part of its interest in Somerset Liang Court Singapore to create the serviced home, by the retained 13,034 sq m of GFA. Upon conclusion, the estimated job development expense of this brand new serviced residence will likely be about $300 million.
Ascott Reit noted that the present Somerset Liang Court is an ageing serviced dwelling and has been facing competition from newer resorts.
Along with the redevelopment, the consortium will also rejuvenate the river promenade beside the land, in accord with the Urban Redevelopment Authority’s Draft Master Plan 2019 to further enhance the area’s vibrancy.
The promenade’s facelift is forecast to generate social activities around the projected integrated advancement, increase footfall and enhance pedestrian accessibility along the Singapore River.
Inside the Singapore River precinct, CDL possesses Central Mall, an office-and-retail improvement along Magazine Road, while CapitaLand has a stake at the Clarke Quay mall – placed in five blocks of shophouses – throughout CapitaLand Mall Trust and a stake in Park Hotel Clarke Quay through Ascott Reit.
CDLHT is managed by subsidiaries of Millennium & Copthorne Hotels, that’s the resort arm of the CDL group.
Separately, CapitaLand announced on Wednesday that it is selling The Star Vista mall into New Creation Church’s company arm for about $296 million.
Shares of CapitaLand dropped two pennies or 0.5 percent to $3.66 on Wednesday, while CDL ended down 24 cents or two percent at $10.61. Components of Ascott Reit dropped two pennies or 1.5 percent to close at $1.31.