Lucrum Capital offers Mama Shelter Singapore orchard for sale for $195 million

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Artists from the upcoming 115-room Mama Shelter Singapore orchard (Photo: Lucrum Capital)

Construction is underway on Mama Shelter Singapore’s upcoming orchard on Killiney Road. The 115-room hotel is expected to open in the first quarter of 2025. It will feature a 6000 square foot dining place at the first point and an area of 8000 square feet. -Rooftop bar with pool. Designed through Ong

David Batchelor, principal and component of Lucrum Capital, believes that Mama Shelter is the most productive location for the hotel, given its location on the Orchard Road domain in Somerset. “In addition to comfortable accommodation, food and entertainment are also a component of Mama’s overall accommodation offer,” she says.

Artist’s impression of the restaurant on the grounds of Mama Shelter (Photo: Lucrum Capital)

Mama Shelter was founded in 2008 in Paris by Serge Trigano, his sons Jérémie and Benjamin, and French designer Philippe Starck. Trigano has a rich hotel pedigree: his father co-founded Club Med in 1950. Trigano himself worked at Club Med, where he rose through the ranks to become executive director of the United States in 1980 and president of the organization after his father resigned in 1993. The Mama Shelter logo combines urban design, glamour, and affordability. It now has 18 hotels with 2,606 rooms and is operated through Ennismore, a lifestyle hotel company that is now part of Accor.

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Next up is the first Mama Shelter in Asia-Pacific, says Stella Blythe, director of CBRE Hotels

David Batchelor of Lucrum Capital, with the structure of the upcoming Mama Shelter Orchard Singapore in the former Tai Wah structure (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Mama Shelter Singapore Orchard is owned by the Lucrum Capital fund. The fund has held the asset for more than five years (beyond its useful life) due to the Covid pandemic. Lucrum Capital intends to sell the asset. “Now that the hotel market is recovering, “We see this as an opportunity for our investors,” Batchelor says.

CBRE has been appointed as the exclusive marketing agent for the hotel, which has an indicative value of $195 million, or $1. 7 million according to key. It is zoned for hotel use, with a gross plot ratio of 2. 8. The sale will be made by expression of interest and will close on May 30.

The $3 billion redevelopment of Singtel Comcentre through a joint venture between Singtel and Lendlease will include two 20-storey Class A buildings with a total gross land of 1. 18 million square feet; and another 30,000 square feet of F-space

Revival is happening in the Orchard-Somerset domain with the redevelopment of the former Grange Road car park through Lendlease Global Commercial REIT into a multi-purpose event space, Live!@313. It is scheduled to open in the fourth quarter of 2024. and will offer exclusive dining concepts and an indoor function room.

Adjacent to the upcoming Mama Shelter Singapore Orchard is the $3 billion redevelopment of Singtel Comcentre through a joint venture between Singtel and Lendlease. The new progression will come with two 20-story Class A workplace buildings with a total gross land of 1. 18 million square meters. feet; and another 30,000 square feet of dining, lifestyle and retail spaces, adding a Singtel flagship store. There will be a 300-seat auditorium, a rooftop park, a jogging and walking track, and a built-in wellness center.

The renovation will bring “dynamism and dynamism” to Orchard Road, says Michael Tay, head of capital markets at CBRE in Singapore. Once completed in 2028, the redevelopment of the Singtel Comcentre will revitalise the community with new advertising and retail offerings and connectivity with a new underground link to Somerset MRT station, it adds.

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The advancement in connectivity and vitality will bring advantages to visitors to the Mama Shelter Hotel and visitors to the rooftop restaurant and bar, notes Lucrum Capital’s Batchelor.

The rooftop bar with pool stretches to 8,000 feet (Photo: Lucrum Capital)

“Singapore has experienced one of the most limited hotel bookings in the Asia-Pacific region over the past three years, due to structure pricing emerging here at a faster rate than any other primary market in the region since the beginning of 2020,” says CBRE’s Blythe. As a result, only 2208 rooms were put on the market in 2023, representing only 2. 8% of the total available rooms.

With the opening of the 989-room Mercure Icon Club Street in the first quarter, CBRE now expects the hotel to grow at a compound annual expansion rate of just 0. 6% over the next 4 years. “The overall functionality of the hotel will remain strong due to the lack of new structure and the consequent new festival on the market,” says Blythe.

According to statistics from the Singapore Tourism Board for the first two months of 2024, the luxury segment had the highest occupancy rate at 86%, up from 78. 6% a year ago. “This reinforces the trend whereby visitors choose to stay in the top positions. “-Final locations, even with rates higher than old levels,” Blythe says.

Singapore’s hotel market is poised for continued expansion, Blythe adds, given competitive demand for expansion forecasts and advancements in infrastructure such as Changi Airport’s Terminal 5, upgraded recreational attractions, and a thriving business and mouse market.

Artist’s impression of one of the rooms at Mama Shelter Singapore Orchard (Photo: Lucrum Capital)

Shortage of freehold hotels in the Orchard Road domain “Freehold hotels in the Orchard Road submarket are rarely found for sale,” according to CBRE’s Tay. The last wholly-owned hotel asset on the Orchard Road domain that will replace the hands of the former site of the Thong Sia Construction at 28 and 30 Bideford Road. Boustead Projects purchased the 18-story construction for $515 million in June 2022 and the assets were renamed the 156-room Como Metropolitan Singapore. This is Como Hotels’ first hotel in the city-state.

Read more: A Chinese couple buys two sets adjacent to Ritz-Carlton apartments for a record $5,397 per square foot.

Citadines Mount Sophia was sold to a joint venture between BlackRock and Hong Kong-based Weave Living for $148 million in February. The 99-year-old, 12-story lease assets include a mix of studios and one- and two-bedroom suites. component of Wilkie Edge’s mixed-use progression comprising an advertising podium, a work building, and a basement parking garage.

Based on the projected hotel room rates at Mama Shelter Singapore Orchard, which are expected to exceed $300 per night, and the target price, the return is expected to be in the order of 4%. ” says Batchelor.

Given the dearth of freehold hotels available in the Orchard Road submarket, CBRE’s Tay expects the assets to attract investors such as family offices, boutique real estate funds, local businesses and high-net-worth individuals. “The hotels in Orchard are big, with over two hundred keys,” he says. “Offerings from department stores like Mama Shelter Singapore Orchard are few and far between. “

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