Indonesian-Born Billionaire Picks Up Singapore Shophouse Hotel for $75M

An Indonesian-born, Ivy League-educated billionaire has acquired a 48-room hotel in the Boat Quay area near downtown Singapore, with market sources who spoke to Mingtiandi confirming a transaction price of S$100 million ($74.9 million).

Leo KoGuan — a software magnate and one of the largest individual shareholders in Elon Musk’s Tesla — bought 21 Carpenter, a hostelry fashioned from four conservation shophouses, from local player 8M Real Estate, according to an announcement this week. Shophouse specialist 8M picked up the 1936-vintage property seven years ago for a reported S$37 million and converted it from retail and office use to a boutique hotel under the Marriott Design brand.

The S$100 million sum represents the largest-ever shophouse transaction by quantum in Singapore, according to deal advisor JLL. The per-key price of more than S$2 million is likewise one of the biggest for a city-state hospitality property, eclipsing the S$1.8 million that Vietnam’s Viva Land paid three years ago for So/ Singapore on Robinson Road.

For local resident Leo, a self-styled Sinologist and historian of Taoism icon Xuan Yuan of Chinese antiquity, the 21 Carpenter buy was part of a mission 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,” he said. “This boutique hotel plays a vital role in enriching Singapore’s cultural landscape, honouring its heritage and celebrating the legacy of Chinese immigrants.”

American Made

Leo, who is around 70 years old, has identified the source of his fortune as successful investments he made in New York real estate while attending Columbia University and New York Law School.

He parlayed those property wins into the takeover of New Jersey-based SHI International Corp, an enterprise software firm he bought out of bankruptcy and still controls along with ex-wife Thai Lee, a Bangkok-born Korean American businesswoman.

His stake in the $15 billion (by sales) tech company and an early bet on electric car giant Tesla helped boost Leo’s net worth to $7.7 billion, according to Forbes estimates. In 2020, he made headlines with his S$62 million purchase of Singapore’s tallest residence — a three-level condo in the 64-storey Guoco Tower — from the Dyson family behind the British gadget firm.

The tycoon’s Timemerchant Capital investment vehicle acquired the leasehold interest of 21 Carpenter through the purchase of 100 percent of the shares in the holding and operating companies, JLL said.

Nihat Ercan, CEO of JLL’s APAC hotels and hospitality group, hailed Singapore’s “ironclad” status as a safe-haven destination for hotel investors.

“The country 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,” Ercan said.

Strength in Conservation

Hotel seller 8M was founded in 2014 by former JLL executive Ashish Manchharam, who built the business on a thesis of revitalising Singapore’s historic shophouses and sold the firm to key backer Crane Capital in 2023.

Conservation shophouses are seen as a safe and relatively secure asset for family wealth preservation in a world growing less certain with political tensions and economic protectionism, according to Knight Frank.

“Compared to the past few years, the shophouse market in 2024 was quieter, as caution among buyers and patient sellers led to a decline in sales activity,” said Mary Sai, executive director for capital markets at Knight Frank Singapore.

While shophouse activity was subdued last year when contrasted with over S$1 billion in sales annually between 2021 and 2023, the asset class’s inherent rarity and heritage provides a long-term assurance for capital preservation so long as Singapore remains stable and on a steady path of growing affluence, the consultancy said.