Project to develop former Changi hospital into spa resort shelved

Imelda Saad, Channel NewsAsia 31 Jan 10;

SINGAPORE: A S$20m makeover to convert the former Changi General Hospital into a luxurious spa resort has been shelved.

Separately, plans to develop a former military camp for commercial use have also stalled.

Changi Point is located in an idyllic part of eastern Singapore, a perfect getaway for stressed urbanites.

Tapping on the potential of the area, land authorities have earmarked several state buildings for commercial use.

These include the 70-year-old former Changi General Hospital. Tender for this site was awarded to Premium Pacific, a subsidiary of Bestway Properties, for a proposed spa and resort development.

The project was to have been completed by the first half of 2008. But today, the building stands vacant.

The Singapore Land Authority (SLA) said the site was returned to the state on January 11 this year upon expiry of the initial three-year term lease.

When contacted, the developer declined to comment on reasons for the project falling through.

Property analysts said the reasons could include developers not being able to meet conditions tied to the preservation of a historical site.

Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic, said: "Sometimes it could be (because the developer could not meet the required) modifications to the building.

"Sometimes it could be... for example, if the building was originally earmarked for hospitality, the developer may find that they may not be able to find a tenant for hospitality use, but they may find one perhaps for commercial use which may not be in the authorities' original plan."

Nearby, a former military camp at Hendon Road had been put up for hotel use. The project has also stalled. The SLA said the bidders had "failed to meet the tender requirements".

Responding to queries from MediaCorp, the SLA and the Urban Redevelopment Authority (URA) said the pace of development is market driven. It added the stalled projects will not affect the overall vision to develop Changi Point into a leisure destination.

Analysts also cited Changi's rustic charm as a draw. Mr Mak said: "The plan to transform Changi into a recreation area is a more medium- to long-term plan and it is important to find the right kind of uses or tenants or developers in that area than to rush through the process and end up having a wrong mix for that area."

Both SLA and URA said they are working together to put up the sites for suitable uses in the near future. They also pointed to other projects at Changi that have taken off. These include converting the single-storey Art-Deco style house, built in 1934, into a seafood restaurant.

Meanwhile, a project to develop the site at a former commando headquarters at Fairy Point Hill into a hotel is ongoing. The first phase of that development is expected to be completed by the end of this year.

- CNA/ir

Building plans in the east go awry
Imelda Saad Today Online 1 Feb 10;

SINGAPORE - The area is located in an idyllic part of Singapore, and tapping on its potential, the authorities had earmarked several state buildings for commercial use.

But two projects in Changi have yet to take off in an ideal way.

The first, a $20-million makeover to convert the former Changi General Hospital into a luxurious spa resort has been shelved, while plans to develop a former military camp at Hendon Road for hotel use have also stalled.

The tender for the 70-year-old former Changi General Hospital had been awarded to Premium Pacific, a subsidiary of Bestway Properties, for a proposed spa and resort development.

This was to have been completed by the first half of 2008.

The Singapore Land Authority (SLA) said the site was returned to the state on Jan 11 upon expiry of the initial three-year term lease.

When contacted, the developer declined to comment on reasons for the project falling through.

Mr Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic said sometimes, reasons could include developers not being able to meet conditions tied to the preservation of a historical site, such as the modifications to the building.

Or, "if the building was originally earmarked for hospitality, the developer may find that they may not be able to find a tenant for hospitality use but they may find one perhaps for commercial use, which may not be in the authorities' original plan", said Mr Mak.

On the Hendon Road hotel project, the SLA said the bidders had "failed to meet the tender requirements".

Responding to queries from MediaCorp, the SLA and the Urban Redevelopment Authority (URA) said the pace of development is market driven, but added the stalled projects will not affect the overall vision to develop Changi Point into a leisure destination.

Mr Mak said: "The plan to transform Changi into a recreation area is a more medium- to long-term plan and it is important to find the right kind of uses or tenants or developers in that area than to rush through the process and end up having a wrong mix for that area."

Both SLA and URA said they are working together to put up the sites for suitable uses in the near future. They also pointed to other projects at Changi that have taken off.

These include converting the single-storey Art-Deco style house, built in 1934, into a seafood restaurant, and the ongoing development of the former commando headquarters at Fairy Point Hill into a hotel.