By Selina Xu
(Bloomberg) — Singapore’s Hotel Properties Ltd., whose managing director Ong Beng Seng is at the moment beneath a graft probe, has gained authorities approval to redevelop three of its properties on Orchard Road, the city-state’s famed buying strip.
The authorities greenlit the corporate to redevelop a challenge that shall be about 1.2 million sq. ft, in accordance with a inventory alternate submitting by the agency on Monday. The firm’s shares jumped greater than 11% as of three:40 p.m. Singapore time, probably the most since June 12.
The authorities is making an attempt to rejuvenate the Orchard Road buying district as a pedestrian-friendly and inexperienced city vacation spot. Hotel Properties is continuing with the challenge simply weeks after Ong was arrested in an ongoing investigation by the nation’s anti-graft company, involving Transport Minister S. Iswaran. Officials have but to file any costs in opposition to both celebration.
Analysts are upbeat concerning the transfer. The approval may “potentially yield significant upside,” wrote DBS analysts in June 12 word. “As the project will likely entail significant capital expenditure, the question will be if the group will seek capital partners” to develop the location collectively.
Hotel Properties will redevelop the Forum shopping center, voco Orchard resort and HPL House right into a blended challenge comprising a resort, retail, workplace and residential parts. The challenge may even have a rooftop backyard and a efficiency theater.
The timeline for the proposed redevelopment has not been decided, the corporate mentioned within the submitting.
Ong, whose Hotel Properties has a portfolio of almost 40 resorts and resorts throughout 15 nations together with the Four Seasons in Singapore and the Maldives, is value about $1 billion, in accordance with the Bloomberg Billionaires index. His Singapore Gp Pte additionally owns the rights to the Formula One Singapore Grand Prix franchise.
More initiatives close to Orchard Road are additionally slated for completion inside the subsequent two years, together with Trifecta, a brand new sports-themed attraction at Somerset.
—With help from Faris Mokhtar.
©2023 Bloomberg L.P.
