Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
Fragrance Group might likely redevelop Katong Square into a brand-new accommodation following one of the Accor companies. Nevertheless, Katong Plaza is located in prime District 15 in the east and just 120m from the Marine Parade MRT Station on the Thomson-East Coast Line and the Parkway Parade shopping mall.
“Our team believe this purchase will improve trust in the collective sale market as builders remain to pursue attractive land plots,” claims Lian.
It is currently zoned for commercial and residential usage but has actually obtained URA approval for resort usage. Lian estimates that the brand-new hotel could produce between 300 and 340 rooms.
Real estate developer Fragrance Group has recently obtained Katong Plaza in Marine Parade for $180 million. The transaction price equates to a land rate of $1,809 psf per plot ratio (psf ppr), including the land improvement charge.
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 maximum gross flooring area of 102,132 sq ft.
Previous month, Fragrance Group and Global Premium Hotels authorized one more arrangement with Accor to open 2 new-build real estates with 3 brand-new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, which will be the biggest Mövenpick hotel in the Asia Pacific region. It will also house Mövenpick Living Singapore, a 37-key hotels focused at tourists looking for prolonged stays.
The various other real property, situated at Waterloo Road, are going to be a brand-new 502-room hotel under the Handwritten Collection brand of Accor. It is a redevelopment of the previous Min Yuan Apartments which Fragrance Group obtained en bloc for $141 million in September 2019; and the former Waterloo Apartments, which it acquired in November 2018 for $131.1 million. The two 999-year leasehold sites were joined together, and URA authorization was obtained for redevelopment right into a 500-room resort.
Fragrance Group and its hospitality arm, Global Premium Hotels, are managed by billionaire property real estate investor and hotelier James Koh, the chairman of both firms. Global Premium Hotels has a collection of companies, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas lodging team Accor bound to open 13 brand-new ibis Budget lodgings, that were formerly Fragrance-branded hotels, in addition to generating the ibis Styles and Mercure labels.
Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Different hotels close-by consist of Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
Katong Plaza is a freehold commercial and residential mixed-use development located at 1 Brooke Road. It has 132 strata retail units and 14 residential houses. Proprietors of the retail units will be getting profits ranging from $502,000 to over $6 million, while residential proprietors will be acquiring between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of financial investment sales who agented the deal.