Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
Property developer Fragrance Group has already obtained Katong Plaza in Marine Parade for $180 million. The sale price equates to a land rate of $1,809 psf per plot ratio (psf ppr), featuring the land improvement charge.
“Our team believe this transaction will certainly improve trust in the cumulative sale market as property developers continue to seek desirable land parcels,” claims Lian.
Fragrance Group might potentially redevelop Katong Square right into a new lodging within one of the Accor labels. After all, Katong Plaza is located in prime District 15 in the east and just 120m from the Marine Parade MRT Stop on the Thomson-East Coast Line and the Parkway Parade shopping center.
Previous month, Fragrance Group and Global Premium Hotels signed another arrangement with Accor to open 2 new-build properties with three brand-new lodgings by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, which will certainly be the biggest Mövenpick lodging in the Asia Pacific region. It will additionally house Mövenpick Living Singapore, a 37-key lodging focused at visitors seeking prolonged stays.
Katong Plaza is beside Roxy Square and the Grand Mercure Roxy Singapore. Many other hotel and resorts close-by include Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
The existing growth spans a complete land area of 34,044 sq ft with a gross plot ratio of 3.0. This calculates to a max gross floor area of 102,132 sq ft.
The various other real estate, based at Waterloo Street, are going to be a brand-new 502-room lodging under the Handwritten Collection brand name of Accor. It is a redevelopment of the previous Min Yuan Apartments which Fragrance Group acquired en bloc for $141 million in September 2019; and the former Waterloo Apartments, which it got in November 2018 for $131.1 million. The two 999-year leasehold locations were joined together, and URA authorization was acquired for redevelopment right into a 500-room resort.
Katong Plaza is a freehold commercial and residential mixed-use development located at 1 Brooke Road. It has 132 strata retail units and 14 non commercial flats. Proprietors of the retail units will be obtaining proceeds ranging from $502,000 to over $6 million, whilst home owners will be acquiring between $2 million and $5.1 million, mentions Terence Lian, Huttons Asia’s head of investment sales that brokered the arrangement.
Fragrance Group and its hospitality arm, Global Premium Hotels, are managed by billionaire real property real estate investor and hotelier James Koh, the chairperson of both companies. Global Premium Hotels has a collection of labels, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas hotel team Accor bound to open up 13 brand-new ibis Budget accommodations, that were previously Fragrance-branded resorts, along with generating the ibis Styles and Mercure labels.
It is currently zoned for commercial and non commercial use but has gotten URA approval for resort usage. Lian projections that the brand-new hotel can produce of 300 and 340 rooms.
