Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
The existing development covers a total land area of 34,044 sq ft with a total plot ratio of 3.0. This works out to a maximum gross flooring space of 102,132 sq ft.
“Our team believe this purchase will certainly increase assurance in the collective sale industry as builders still pursue desirable land plots,” claims Lian.
Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Other hotel and resorts nearby consist of Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
Fragrance Group and its accommodation arm, Global Premium Hotels, are controlled by billionaire real estate developer and hotelier James Koh, the director of both companies. Global Premium Hotels has a profile of labels, featuring the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and global lodging group Accor tied up to open 13 brand-new ibis Budget lodgings, which were previously Fragrance-branded hotels, along with generating the ibis Styles and Mercure brand names.
Last month, Fragrance Team and Global Premium Hotels authorized an additional contract with Accor to open two new-build properties with three new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, that will certainly be the biggest Mövenpick lodging in the Asia Pacific location. It will also house Mövenpick Living Singapore, a 37-key hotels intended at travellers looking for prolonged stays.
Real property developer Fragrance Team has recently obtained Katong Plaza in Marine Parade for $180 million. The transaction price converts to a land rate of $1,809 psf per plot ratio (psf ppr), including the land betterment charge.
It is at the moment zoned for business and residential usage but has actually gotten URA authorization for resort use. Lian quotes that the new hotel could generate of 300 and 340 rooms.
Katong Plaza is a freehold commercial and residential mixed-use development located at 1 Brooke Roadway. It has 132 strata retail units and 14 residential residences. Proprietors of the retail units will be getting profits varying from $502,000 to over $6 million, while home proprietors will be getting in between $2 million and $5.1 million, notes Terence Lian, Huttons Asia’s head of financial investment sales that agented the deal.
Fragrance Group could potentially redevelop Katong Square right into a brand-new lodging within one of the Accor companies. Besides, Katong Plaza lies in top District 15 in the eastern side and only 120m from the Marine Parade MRT Station on the Thomson-East Coast Line and the Parkway Parade shopping center.
The other property, situated at Waterloo Street, are going to be a brand-new 502-room hotel under the Handwritten Collection brand of Accor. It is a redevelopment of the past Min Yuan Apartments that 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. Both 999-year leasehold sites were integrated, and URA authorization was obtained for redevelopment into a 500-room hotel.
