28-8-2023 (SINGAPORE) Singapore’s Hotel Properties Ltd. has received government approval to embark on a redevelopment project involving three of its properties on Orchard Road, the renowned shopping thoroughfare in the city-state. This development comes amid ongoing investigations into the company’s managing director, Ong Beng Seng, on graft allegations.
The government’s green light enables Hotel Properties to proceed with a project spanning approximately 1.2 million square feet, as stated in the firm’s stock exchange filing. In response, the company’s shares surged over 11% by 3:40 p.m. Singapore time, marking the most substantial increase since June 12.
Singapore’s authorities are actively working to revitalize the Orchard Road shopping district, envisioning it as a pedestrian-friendly and environmentally sustainable urban destination.
Despite the graft investigation involving Ong, Hotel Properties is moving forward with this ambitious project. Ong’s arrest was part of an ongoing inquiry by Singapore’s anti-graft agency, which also involves Transport Minister S. Iswaran. However, no charges have been filed against either party at this time.
Analysts view the government’s approval positively, with DBS analysts noting its potential for “significant upside” in a note on June 12. They also raised the question of whether Hotel Properties might seek capital partners for the development, given the anticipated substantial capital expenditure.
The redevelopment initiative by Hotel Properties encompasses the transformation of the Forum shopping mall, voco Orchard hotel, and HPL House into a mixed-use project. This development will comprise elements such as a hotel, retail spaces, office areas, and residential units. Additionally, the project will feature a rooftop garden and a performance theater.
The specific timeline for this proposed redevelopment has not yet been determined, as stated in the company’s filing. Ong, who leads Hotel Properties, boasts a portfolio of nearly 40 hotels and resorts across 15 countries, including notable properties like the Four Seasons in Singapore and the Maldives. According to the Bloomberg Billionaires index, Ong is worth approximately $1 billion. His Singapore Gp Pte also holds the rights to the Formula One Singapore Grand Prix franchise.
Further developments near Orchard Road are also slated for completion within the next two years, including Trifecta, a sports-themed attraction in Somerset.
