Singapore-based Indonesian billionaire Leo KoGuan, director of Timemerchant Capital, has entered into an agreement with 8M Real Estate to acquire 48-key boutique hotel 21 Carpenter. According to industry sources, the purchase price is said to be $100 million, setting a near-record price of $2.08 million per key.

The current record price per key for a hospitality asset is held by Ascott Raffles Place. The 146-key hotel on Finlayson Green was sold for $353.3 million in January 2019, reflecting a price of $2.42 million per key.

Under the transaction, Timemerchant Capital is expected to acquire the leasehold interest through the purchase of the shares in the holding and operating companies. The transaction, which was brokered by JLL, marks the largest shophouse transaction by quantum in Singapore and represents Timemerchant’s inaugural hotel acquisition in Singapore.

According to an April 2 release, the landmark sale by 8M Real Estate “will enable the reinvestment of these gains into new opportunities that align with its refreshed brand promise of sustainable, community-driven development.”

Located between New Bridge Road and Carpenter Street, 21 Carpenter is the amalgamation of four conservation shophouses at 27, 29, 31 and 33 New Bridge Road.

8M Real Estate purchased the properties in February 2018 for $37 million and redeveloped it into a boutique hotel, adding a five-storey extension at the rear of the property to accommodate more guest rooms. The hotel opened up for business in December 2023. Currently, it houses 48 guest rooms between 323 and 603 sq ft.

21 Carpenter has since earned several awards including the Singapore Institute of Architects (SIA) Design of the Year award and the Best Boutique Hotel award at the EdgeProp Excellence Awards 2024. Designed by WOHA Architects, the building’s architecture incorporates elements of its rich history as a former remittance house.

“My mission is to make a meaningful contribution to society. As a new member of the community, I am committed to enhancing the welfare, culture, and heritage of Singapore,” says KoGuan. “This boutique hotel plays a vital role in enriching Singapore’s cultural landscape, honouring its heritage, and celebrating the legacy of Chinese immigrants.”

KoGuan has made headlines in recent years as one of the largest individual shareholders in Tesla. He is also the founder and chairman of SHI International, a multinational IT solutions and services company.

Nihat Ercan, CEO of JLL’s Hotels & Hospitality Group in Asia Pacific, adds: “[Singapore] continues to diversify its status as a bona fide global gateway market as an international travel destination, while its long-term economic fundamentals will ensure that its booming hotel sector will continue to attract a broader array from across the region and globe.”

8M Real Estate notes that the sale “unfolds at a time when Singapore’s hospitality sector is buoyed by strong economic fundamentals, robust investor interest, and a surge in tourism”. The group adds that the transaction represents potential future opportunities in the boutique hotel segment, following government investments in infrastructure to maintain Singapore as a premier MICE destination.

This version of article written by Ashley Lo and first appeared at EdgeProp Singapore.

Photo: 8M Real Estate