Park Hotel Group announced on Sept 18 that it had entered into a sale and purchase agreement with Glory Property Investment Singapore to sell its wholly owned subsidiary New Park Property. The subsidiary owns the hotel and retail development, Grand Park Orchard (below) and Knightsbridge on prime Orchard Road. The transaction should be completed in October. The property will continue to be managed by Park Hotel Group as Grand Park Orchard and Knightsbridge, with an initial lease for 10 years and the option to extend for another five.

Grand Park Orchard opened in 2010 and has 308 rooms while Knightsbridge’s commercial podium houses the flagship stores of Topshop and Abercrombie & Fitch. The development was the first asset purchase in Singapore by Park Hotel Group in 2005. The property is former Crown Prince Hotel. The group purchased it for $300 million and spent $80 million on its make-over. It was subsequently rebranded as the five-star Grand Park Orchard. Asset enhancement of the hotel included converting some of the hotel’s space into a retail area.

“The group has aggressive plans to grow and we continue to do so through acquisition and management contracts,” says Allen Law, CEO of Park Hotel Group. The group continues to own and operate six other Park-branded hotels in Singapore, China, Hong Kong and Japan. Two other hotels are due to open in Singapore in 2015: Park Hotel Alexandra (on top of the Alexandra Central mixed-use development) and Park Hotel Farrer Park. Both properties will managed on behalf of third-party owners.

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