Paramount Hotel and Shopping Centre site on sale

Paramount Hotel and Paramount Shopping Centre are up for sale at an indicative price of $200 million.

Located at 25 Marine Parade Road and 30 East Coast Road, Paramount Hotel and Paramount Shopping Centre make up a 229-room hotel-and- shopping complex.

The freehold property in District 15 was last put on the market in May 2007 at the same price but did not sell.

The 102,685 square foot site is zoned for hotel use. It has a gross plot ratio of up to 3. The site can be redeveloped into a hotel and retail development with a gross floor area (GFA) of up to 308,056 sq ft – subject to approval and payment of development charge.

Marketing agent Jones Lang LaSalle (JLL) says this could yield up to 460 hotel rooms. The site also has the potential for alternative uses such as condominium, a mix of hotel and residential or a mix of commercial and residential.

If a developer chooses to allocate 60 per cent of the maximum GFA for hotel use and the remaining 40 per cent for commercial use, an estimated development charge of $12.8 million will be payable. The price of the property will work out to $691 per sq ft per plot ratio (psf ppr).

If a developer builds a residential condominium with a 2.1 plot ratio, an estimated development charge of $40 million will be payable. The price will then works out to $1,113 psf ppr.

‘The hotel industry will continue to do well and hotels outside the CBD area, such as the subject site, will gain popularity as they offer competitive pricing, proximity and easy accessibility to town,’ said JLL’s head of commercial investments Quek Soh Hoon. ‘As the site is located in an established residential area, it could be redeveloped into a condominium development or a mixed development comprising hotel- cum-residential or commercial-cum-residential.’

The tender for the site closes at 3pm on Nov 23.