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SINGAPORE - Hotel Grand Pacific along Victoria Street (opposite Bras Basah Complex) has been sold for around $210 million.

The price works out to around $850,000 to $900,000 per key for the 240-room, 16-storey freehold hotel.

The buyer is a consortium of Asian investors, advised by HVS Global Hospitality Services. The consortium made an unsolicited offer to the hotel's owner, Sun Asia Pacific Corporation (Singapore), controlled by Paul Sun, who was active in the Singapore real estate market in the 1980s and early 1990s. Tokyo- born Mr Sun, who is a Singapore citizen, is now in his late 70s.

Market watchers said that Hotel Grand Pacific was the last major Singapore real estate investment held by Mr Sun. He also used to own Plaza by the Park along Bras Basah Road and the former Promenade along Orchard Road.

Mr Sun bought the hotel property along Victoria Street from Jack Chia-MPH Group in 1989.

The hotel property was completed in 1971 as Hotel New Hong Kong and underwent several refurbishments and extensions as well as name changes - Hotel Tai-Pan, Tai-Pan Ramada Hotel and Allson Hotel - before its current name.

The current 16-storey block was part of a larger two-block hotel asset called Allson Hotel owned by Sun Asia. In 2004, the rear block, along Queen Street, was sold to listed Hotel Royal, which has renamed it Hotel Royal@Queens.

The hotel is on land area of 25,295 square feet and its facilities include a ballroom, meeting rooms, Chinese restaurant, coffee house and swimming pool. It was last renovated three years ago.

HVS managing director Chee Hok Yean said: "The $850,000 to $900,000 price per room sets a benchmark for a four-star hotel in Singapore. This is a choice investment as the hotel sits on a freehold tenure with comparatively large-sized rooms in the city centre with a robust on-going business."

Hotel Grand Pacific's rooms are generously sized at around 300 sq ft each.

As part of the deal, the hotel will continue to be managed independently under its current trading name. The seller will no longer be involved with the management after the property has been transferred to the new owner, said Ms Chee.

The buyer intends to continue with the existing use, although it is planning to spruce up the asset, such as the lobby and other common areas.

Significant hotel transactions in the past two years include the 320-room Crowne Plaza Changi Airport, which was sold last year for $299.5 million. Buyer Overseas Union Enterprise said that it would build an additional 200 rooms for $37 million. The five-star hotel is on land with a remaining tenure of 72 years at the time of the transaction.

At New Market Street/ Merchant Road, Park Regis Singapore was sold in 2010 for $218 million; the deal involved the 203-room, four-star hotel and a seven- storey office block with about 42,000 sq ft net lettable space. At the time, the hotel component was reported to be valued at around $730,000 per room and the site had balance lease of over 96 years.

Ms Chee also points to pricing for three mid-tier hotels in the city in conjunction with the recent flotation of Far East Hospitality Trust. Landmark Village Hotel, a 393-room property along Arab Street/Victoria Street, was priced at nearly $556,000 per room on 66-year leasehold tenure.

In the Selegie Road area, the 210-room Albert Court Village Hotel, on 75-year leasehold tenure, was priced at $575,000 per room, while The Elizabeth Hotel, a 256-room property on 75-year tenure, was priced at $729,000 per room.