AMW checks into first Singapore investment

ASHE Morgan Winthrop has launched into Singapore by securing a prime $S250 million ($AU195 million) business hotel project.

AMW has formed a joint venture vehicle, Park Regis Investments with Singapore’s A&B Hotels Pte Ltd to buy a development site located on Merchant Road for around $S100 million.

A&B is controlled by Asok Kumar Hiranandani of Royal Brothers Group and British citizen Balbinder Singh Sohal. A&B owns 50% of Kusido Hospitality & Property Group, which owns and operates the Leisure Inn and the Park Regis hotel brands in Australia.

The joint venture plans to develop a 200 room, four-star business hotel on the site, along with sqm of commercial office space.

The hotel will be operated under the Park Regis brand and will include a restaurant, bar, three function rooms, swimming pool, spa, gym, business centre, and onsite parking.

The commercial space will be located on the lower levels of the twin-tower development.

AMW’s managing director Michael Rothner said the project brings new international dimension to AMW’s portfolio of joint venture developments, currently valued at over 1 billion.

Last month, AMW and AVJennings teamed up to develop a 15,000 office building at Sydney Olympic Park.

Rothner said given the strong fundamentals underpinning the office and hotel markets, and the continued growth of tourism in Singapore, it was possible that the completed hotel and commercial space at Merchant Road could be pre-sold prior to completion.

Park Regis’s chief executive Simon Wan said demand for hotel accommodation in Singapore is so strong that new sites for hotel development announced by the Singapore Government are equivalent 6000 rooms. The Merchant Road project is at one of these sites.

“We have entered this transaction on the sound fundamentals and upcoming growth in the Singapore market.

“We expect the value of this property on completion will be in excess of $S250 million ($AU195 million). The development is scheduled for completion in late 2009,” Rothner concluded.

Australian Property Journal