Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
The various other real estate, located at Waterloo Road, will be a new 502-room lodging under the Handwritten Collection brand of Accor. It is a redevelopment of the previous Min Yuan Apartments which Fragrance Group got 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 sites were integrated, and URA authorization was obtained for redevelopment right into a 500-room resort.
Property developer Fragrance Group has recently gotten Katong Plaza in Marine Parade for $180 million. The purchase price converts to a land rate of $1,809 psf per plot ratio (psf ppr), including the land improvement charge.
“Our team believe this purchase will improve assurance in the collective sale industry as builders continue to seek attractive land plots,” says Lian.
The existing growth spans an overall acreage of 34,044 sq ft with a total plot ratio of 3.0. This calculates to a maximum gross floor space of 102,132 sq ft.
Katong Plaza is a freehold commercial and residential mixed-use project located at 1 Brooke Roadway. It has 132 strata retail units and 14 non commercial apartments. Owners of the retail units are going to be obtaining earnings extending from $502,000 to over $6 million, whereas home proprietors will be acquiring between $2 million and $5.1 million, notes Terence Lian, Huttons Asia’s head of investment sales who agented the agreement.
Fragrance Group might likely redevelop Katong Square right into a new hotel within among one of the Accor brands. Nevertheless, Katong Plaza is located in prime District 15 in the east and only 120m from the Marine Parade MRT Terminal on the Thomson-East Coast Line and the Parkway Parade shopping center.
Katong Plaza is beside Roxy Square and the Grand Mercure Roxy Singapore. Many other inns nearby consist of Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
It is presently zoned for business and residential usage but has obtained URA approval for resort use. Lian quotes that the new hotel could produce around 300 and 340 rooms.
Previous month, Fragrance Group and Global Premium Hotels signed an additional arrangement with Accor to open up 2 new-build properties with three brand-new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, which will be the largest Mövenpick hotel in the Asia Pacific location. It will additionally house Mövenpick Living Singapore, a 37-key accommodation focused at travellers seeking lengthened stays.
Fragrance Group and its hospitality arm, Global Premium Hotels, are managed by billionaire real estate builder and hotelier James Koh, the director of both business. Global Premium Hotels has a profile of companies, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and global hotels and resort group Accor tied up to open 13 new ibis Budget accommodations, that were previously Fragrance-branded resorts, along with generating the ibis Styles and Mercure brand names.
