City Dev / Orchard Parade Hotel: The proposed collective sale of Tanglin Shopping Centre has fallen through, as the sale committee managing the en bloc sale process has not been able to secure a buyer, Millennium and Copthorne Hotels (M&C) said yday. M&C, the London-listed hotel arm of City Dev has > 30% interest in the total strata title area.
This was the 2nd time that the freehold site, which is ~ 68.5k sf, was put up for en bloc sale, after a failed tender earlier this year failed to draw a buyer. With a reserve price said to be $1.25b, this translated into ~$4,000 psf of potential gfa, assuming the site is redeveloped, and if approval is given to raise the plot ratio to 4.5 from the current 4.2.
This would be a blow to those who are speculating that a successful sale of Tanglin Shopping Centre would lead to a re-valuation of the adjoining Orchard Parade Hotel, the prime asset of OPH.
Nevertheless, at 0.47x P/B, OPH valuations are by no means expensive. Peers Amara and HPL trade at 0.85x, 0.77x P/B, respectively.