It is zoned for commercial use and has a potential gross floor area of about 16,000 square metres.

Notable buildings in the vicinity include Claymore Plaza, Pacific Plaza, Shaw House, Shaw Centre and the Royal Thai Embassy.

The successful tenderer will have the choice to develop and manage offices, retail shops, or a hotel, or a mixed development on the site, up to a maximum building height of 30 storeys, subject to approval.

Sole marketing agent Jones Lang LaSalle (JLL) said the tender will close on April 29.

It said the immediate proximity is the most sought-after and tightly held hotel and retail location in Singapore and includes Grand Hyatt Singapore, Hilton Singapore, Singapore Marriot Hotel, Pan Pacific Orchard, Royal Plaza on Scotts and Ion Orchard.

Provisional permission for the redevelopment of the site to a new 23-storey office tower with carparks and restaurants was obtained on February 28 this year. The development charge for the redevelopment based on the proposal approved under the said Provisional Permission will be borne by the lessor.

Quek Soh Hoon, national director and head of commercial investments at Jones Lang LaSalle, said: " We expect keen interest in the site as it represents an extremely rare opportunity for a long-term lease of a prime site along Orchard Road.

" The flexible development options for the site will appeal to a wide group of investors given that Orchard Road is the prime retail and entertainment belt in Singapore."

She added: " Supply of retail, commercial or hotel space along Orchard Road is extremely limited."

Tom Oakden, senior vice president of investment sales at Jones Lang LaSalle Hotels, said: " Orchard Road is arguably one of the most tightly held hotel pitches, not just in Singapore but in Asia, with opportunities for hotel development only coming along every ten years or so in this prestigious area."

He added that " with the strong underlying fundamentals of Singapore's hotel market" together with growing investor and developer demand, JLL expects the site to appeal to domestic and regional groups that are keen to exploit the potential of a hotel in the prime location.