‘No misrepresentation of track record’ in Therme Group unit’s tender bid for wellness project: STB

[SINGAPORE] There was “no misrepresentation of track record” in Therme Group Singapore’s submission for the tender to build Singapore’s first dedicated wellness attraction, said the Singapore Tourism Board (STB) on Wednesday (Nov 5).

STB was responding to media inquiries on a New York Times investigative report in April accusing the Therme Group of misrepresenting itself with false claims in a similar bid to secure a deal to run wellness facilities in Toronto, Ontario in Canada.

European spa operator Therme Group’s Singapore unit – helmed by former minister Mah Bow Tan – on Tuesday (Nov 4) won a tender to develop a S$1 billion wellness attraction in Marina South. It is set to open by 2030.

According to the NYT report, Ontario auditors in 2024 found the selection process for Therme’s 2019 Toronto bid had been “unfair and opaque”. The report accused Therme of inflating its track record and other false claims when it presented itself as an experienced spa operator with as many as six spas in Europe, but had built and operated just one outside Romania.

In response to BT’s queries, a Therme spokesperson said: “The premier of Ontario and the minister of infrastructure had confirmed that Therme’s proposal met the required standards and passed the necessary evaluations.”

Subsequent to the hullabaloo over the Ontario project, new partners and backers joined the Therme Group. In June, CVC Capital Partners and Therme Group announced a joint venture to invest in the development of spa resorts. The joint venture’s set-up was completed in August.

Called Therme Horizon, it was created in a deal worth more than €1 billion (S$1.5 billion) and comprises Therme Erding in Germany and Therme Bucharest in Romania.

CVC had also said it was co-investing in the development of Therme Manchester, which is expcted to open in 2028 as the largest water-based wellness destination in Europe.

Therme Group’s current resort development locations include Frankfurt, Toronto, Washington, Dallas, Dubai and Incheon.

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An STB spokesperson said the tender for the Singapore project was awarded following a “comprehensive evaluation process”.

“The tender submissions were evaluated according to the published evaluation criteria and due diligence checks were carried out to verify all submitted information and ensure compliance with requirements,” STB said in a statement.

“There was no misrepresentation of track record in Therme Group Singapore’s submission for the tender for a wellness attraction at Marina South Coastal site,” it added.

The evaluation criteria for Therme Group Singapore’s tender win included its track record and financial strength, said the STB spokesperson. It also included the development concept, the quality of physical infrastructure plans and its complementarity to other surrounding developments in the precinct.