12 14 16 Teck Lim Road
SINGAPORE
INFORMATION MEMORANDUM
Hotel Opportunity Within Vibrant Chinatown-Bukit Pasoh Conservation Area For Sale By Expression of Interest Closing 28 March 2017 (Tuesday), 3.00pm 12, 14, 16 TECK LIM ROAD CHINATOWN HOTEL Table of Contents
Situated in the heart of the ‘Chinatown – Bukit Pasoh Conservation Area’ of Singapore, The Sale Process...... 4 No. 12, 14 & 16 Teck Lim Road comprises 01 three adjoining 3½-storey conservation Key Investment Highlights..... 6 shophouses currently housing a 42-room 02 boutique hotel. 03 Location Attributes...... 8 Cushman & Wakefield has been retained as the exclusive advisor to the Vendor to offer 04 Site Information...... 10 for sale the subject property (the “Property”) through an Expression of Interest (“EOI”) Building Information...... 11 exercise which will close on 28 March 2017 05 (Tuesday), 3.00pm. 06 Projected Financials...... 12 This is a confidential document intended solely for your own limited use to determine 07 Recent Transactions...... 14 whether you wish to express interest in purchasing the Property. By your receipt of Floor Plans...... 16 this confidential document, you agree that 08 this document and the information contained Written Permission...... 24 herein is of a confidential nature, and that 09 you will hold and treat it in the strictest confidence. 10 Contact Us...... 28
2 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 3 The Sale Process
Cushman & Wakefield are seeking Expressions of Interest (EOI) submissions for the acquisition of the PROPOSED TIMETABLE Property by: Following receipt of EOIs, it is proposed that 28 March 2017 (3.00pm), Tuesday finalization of the sale will proceed in accordance with the following timetable: All Expressions of Interest submissions are to be in writing and addressed to: S/N Stage Date “Submission of Expression of Interest – Distribute Information February 2017 1 12, 14, 16 Teck Lim Road” Memorandum – March 2017 Cushman & Wakefield Submission of non-binding 28 March 2017, 2 3 Church Street, #09-03 Samsung Hub Expression of Interest Bid 3.00 p.m Singapore 049483 Due Diligence by Shortlisted 2nd week April 3 Attn: Mr Shaun Poh – Capital Markets Bidders 2017 Finalization & Signing of 4th week of Respondents expressing interest are to provide the 4 Sale & Purchase Agreement April 2017 following information in their submission: Subject to Financial: The offer price must be stated in 5 Target Legal Completion Agreement Singapore Dollars with full details of deposit on exchange and any other relevant financial terms and should not include GST, stamp duty or any relevant taxes. NO OBLIGATION Identity: To provide the legal identity of TO ACCEPT EOI the individual, company and/or companies expressing interest and to include contact The vendor reserves the right not to accept an EOI, details with names, address, telephone without limitation, and is not obliged to accept the numbers, email address and/or facsimile EOI with the highest consideration. numbers. The vendor may, in its absolute discretion, negotiate Contact Details: Names, addresses and with any prospective purchaser who submits an EOI contact details of key transaction personnel. or with any other person with respect to the sale of Special Conditions: Principal conditions the property and at any time prior to the execution of to which a final binding offer would be binding contracts, may withdraw the property from subject including all details of any corporate the market. shareholders, regulatory, and approvals required. EOIs must be signed by an authorized officer of the legal entity.
4 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 5 Key Investment Highlights
FREEHOLD HIGH FOOT POTENTIAL FOR 1 TENURE 3 TRAFFIC 5 SUBDIVISION The area hosts an eclectic mix of cafes, There is potential for the Property to be The Property has a freehold tenure, restaurants and bars that are frequented subdivided into 3 separate titles, subject which presents an excellent opportunity by both tourists and locals. to approval from relevant authorities. This for investors seeking mid to long-term will provide flexibility in reconfiguration investment. and possible higher achievable value if EXCELLENT the shophouses are sold individually. CENTRAL & ACCESSIBILITY 4 GREAT CAPITAL 2 EXCITING LOCATION The hotel is within walking distance to the Outram Park MRT Interchange Nestled within the popular Keong Saik APPRECIATION Station (EW16/NE3/TE17), the Chinatown 6 Road locale in the CBD, the area has MRT Station and the upcoming Maxwell POTENTIAL been seeing agglomeration of creative MRT Station (TE18). It is also accessible and swanky F&B and office space via major arterial roads, New Bridge Road Being strategically located in an area concepts such as Burnt Ends, Esquina, and South Bridge Road and via the Ayer- with increasing rejuvenation, coupled Restaurant Ember, Potato Head Folk Rajah Expressway (AYE) and Central with the proximity to several major MRT Bistro as well as The Working Capitol Expressway (CTE). stations which will enhance accessibility amongst many others. to the subject locality, there is underlying potential upside for the asset value.
6 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 7 Location Attributes 12, 14, 16 TECK LIM ROAD Located CHINATOWN HOTEL within Central Business District and Bukit Pasoh Conservation Area
Situated within a swanky F&B/entertainment locale popular with tourists and business travellers
Minutes’ walk to Outram Interchange, the Chinatown & future Maxwell MRT Stations
8 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 9 Site Building Information Information
Address BUILDING INFORMATION 12, 14, 16 Teck Lim Road Singapore 088387 Gross Floor Area* 11,200 sq ft
1 passenger lift serving all Legal Lifts Description floors Lot 99189C Town Subdivision 5 Approved Use Hotel – 1st, 2nd, 3rd storeys (11/7/1995) and mezzanine
1st storey – 9 rooms Site Area 2nd storey – 15 rooms 385.8 sq m (Approximately 4,153 sq ft) No. of Rooms 3rd storey – 15 rooms Mezzanine – 3 rooms Total: 42 rooms Tenure Standard single – 118.4 sq ft Freehold Standard double (no windows) – 118.4 sq ft Typical Room Type & Size* Standard double – 129.2 sq ft Deluxe double – 139.9 sq ft Master Plan 2014 Family room – 139.9 sq ft Zoned “Commercial” 24h Reception desk Facilities Luggage storage Guest lounge
Town Planning *subject to final survey and verification Conserved Building within the Chinatown-Bukit Pasoh Conservation Area
10 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 11 Projected Financials
Average Room Rate $130 $154 $160 $168 $175
Occupancy 68% 81% 81% 81% 81%
Room Revenue $1,355,175 $1,911,140 $1,985,600 $2,084,880 $2,171,750
Other Income $216,800 $311,800 $323,600 $340,100 $354,300
Total Income $1,571,975 $2,222,940 $2,309,200 $2,424,980 $2,526,050
Operational Expenses
Labour Cost $168,000 $168,000 $178,000 $188,000 $188,000
Advertising & Promotion $12,000 $48,000 $55,000 $60,000 $66,000
Repair & Maintenance $60,000 $86,000 $94,000 $100,000 $100,000
Utilities and Services $130,000 $152,000 $158,000 $168,000 $172,000
Admin & General $15,000 $36,000 $36,000 $40,000 $40,000
GOP $1,186,975 $1,732,940 $1,788,200 $1,868,980 $1,960,050
Less Insurance $4,000 $8,200 $8,200 $8,200 $8,200
Less Property Tax $22,000 $24,800 $30,000 $30,000 $30,000
Profit Before Debt $1,160,975 $1,699,940 $1,750,000 $1,830,780 $1,921,850 Financing
* Figures provided by owners
12 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 13 Recent Shophouses Recent Hotel Transactions Transactions
Price Tenure/ Balance No. of Month Property Land Area (sq m) Sale Price ($) Month Hotel Name Address Tenure Per Room Lease Rooms ($) 67 Tanjong Pagar 99 Yrs From Jan-17 160 8,850,000 Road 07/04/1992 Sep-15 Big Hotel 200 Middle Road Freehold 308 659,091 999 Yrs From Jan-17 97 Amoy Street 189 12,800,000 01/10/1827 Crowne Plaza Changi 75 Airport Nov-14 99 Yrs 347 835,735 Airport Boulevard Jan-17 45 Cantonment Road 125 6,400,000 Freehold Sep-13 The Gallery Hotel 1 Nanson Road Freehold 222 1,047,299 999 Yrs From Dec-16 49/49A Amoy Street 93 6,458,888 21/06/1833 The Singapore Resort & 2 Bukit Manis 99 Yrs From Aug-13 86 Yrs 215 974,814 Nov-16 40 Craig Road 147 6,000,000 Spa Road 28/07/1989 50 Keong Saik 99 Yrs From Aug-13 1929 Hotel Freehold 32 1,093,750 Nov-16 4 Craig Road 154 10,800,000 Road 22/09/1988 277/279 Oct-16 236 14,500,000 Freehold Apr-13 Park Hotel Clarke Quay 1 Unity Street 99 Yrs 336 892,857 New Bridge Road 999 Yrs From Oct-16 25 Boon Tat Street 165 19,000,000 May-13 Berjaya Hotel 83 Duxton Road 99 Yrs 49 1,020,408 01/11/1884
Sep-16 16 Smith Street 100 8,800,000 Freehold Oct-12 Hotel Grand Pacific 101 Victoria Street Freehold 240 866,667
11/13 Bukit Sep-16 272 25,000,000 Freehold Pasoh Road Apr-12 Mercury Boutique Hotel 22 Teck Lim Road Freehold 56 482,143 89 Tanjong Pagar 99 Yrs From Sep-16 119 6,880,000 Road 03/04/1992 Note: All quoted areas and sale prices are based on approximate figures Source: Realis, Cushman & Wakefield 205/207 99 Yrs From Sep-16 161 20,500,000 New Bridge Road 19/01/1995
Note: All quoted areas and sale prices are based on approximate figures Source: Realis, Cushman & Wakefield
14 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 15 Floor Plans Floor Plans
16 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 17 Floor Plans Floor Plans
18 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 19 Floor Plans Floor Plans
20 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 21 Floor Plans Floor Plans
22 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 23 Written Permission Written Permission
24 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 25 Written Permission Written Permission
26 | Cushman and Wakefield Teck Lim Road Chinatown Hotel | 27 CONFIDENTIALITY Contact Us NOTICE & DISCLAIMER This confidential Information Memorandum is intended Shaun Poh solely for your own limited use to determine whether you Executive Director wish to express interest in purchasing an asset located at 12, 14, 16 Teck Lim Road Singapore 088387 (the “Property”). +65 9662 6430 / +65 6232 0882 [email protected] By your receipt of this confidential Information CEA Reg No: R020591I Memorandum , you agree that this brief and the information contained herein is of a confidential nature, and that you will hold and treat it in the strictest confidence, and that you will not, directly or indirectly, disclose or permit anyone Terry Wong else to disclose this brief or any part of the contents to Assistant Manager any other person, firm or entity, including any prospective +65 9654 1383 / +65 6232 0883 partner or other financial institution, without prior written [email protected] authorization of C&W and/or the Client, nor will you use or CEA Reg No: R053307Z permit to be used this brief or any part of the contents in any fashion or manner detrimental to or in conflict with the interest of the Client. Neither the Client nor C&W makes any representation or warranty, expressed or implied, Alaric Yeo as to the accuracy or completeness of this confidential Senior Executive Information Memorandum or any of its contents, or to the quality or fitness of the Property, and no legal liability is +65 9297 9278 / +65 6232 0836 assumed or to be implied by any of the aforementioned [email protected] with respect thereto. This brief has been prepared solely CEA Reg No: R050917I for informational purposes to assist an interested buyer in determining whether to proceed with an in-depth investigation of the Property. An interested buyer shall rely only on its own investigation. Cushman & Wakefield While the information contained herein is from sources deemed reliable, it has not been independently verified and 3 Church Street is provided subject to errors and omissions. The Client and #09-03 Samsung Hub C&W expressly reserve the right at their sole discretion to Singapore 049483 reject any or all proposals or expressions of interest in the Property and to terminate discussions with any party at any Estate Agents Licence: L3007333E time with or without notice.
Cushman & Wakefield Copyright 2017. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.