Hotel Royal plans expansion with purchase of 7,700 sq ft site

Posted: 16 May 2007 2004 hrs

SINGAPORE: Hotel Royal is planning to buy seven of eight units at Star Mansions on Surrey Road.

It will pay S$14.1 million for the seven apartments, which are next to its hotel building.

This works out to $739 per square foot per plot ratio.

The remaining unit in Star Mansions was bought by a substantial shareholder of Hotel Royal.

This is because Hotel Royal is deemed to be a foreign company under the Residential Property Act.

As such, it is only allowed to buy up to seven units in the development.

Star Mansions is a freehold nine-storey residential development with a land area of over 7,700 square feet.

It has an allowable plot ratio of 2.8 and a maximum height of 36 storeys.

Hotel Royal says the deal was carried out with a view to its future expansion plan.

It plans to finance the acquisition through internal resources and bank borrowings. - CNA/yy