Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
The other real property, based at Waterloo Street, are going to be a brand-new 502-room hotel under the Handwritten Collection brand name of Accor. It is a redevelopment of the previous Min Yuan Apartments that Fragrance Team 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 amalgamated, and URA authorization was acquired for redevelopment into a 500-room hotel.
Property developer Fragrance Group has already acquired 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), featuring the land improvement charge.
It is at the moment zoned for business and non commercial usage but has actually gotten URA authorization for resort use. Lian estimates that the brand-new hotel can produce between 300 and 340 rooms.
Last month, Fragrance Group and Global Premium Hotels signed one more arrangement 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, which will be the largest Mövenpick lodging in the Asia Pacific place. It will additionally house Mövenpick Living Singapore, a 37-key lodging focused at tourists looking for extended visits.
“Our company believe this sale will certainly increase trust in the cumulative sale industry as builders remain to seek appealing land plots,” claims Lian.
Fragrance Group and its accommodation arm, Global Premium Hotels, are managed by billionaire real property builder and hotelier James Koh, the chairman of both business. Global Premium Hotels has a profile of companies, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas hotels and resort group Accor bound to open 13 brand-new ibis Budget hotels, which were formerly Fragrance-branded hotels, together with bringing in the ibis Styles and Mercure labels.
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 houses. Owners of the retail units will be receiving proceeds ranging from $502,000 to over $6 million, whereas household proprietors will certainly be obtaining in between $2 million and $5.1 million, notes Terence Lian, Huttons Asia’s head of financial investment sales who brokered the agreement.
Fragrance Group might possibly redevelop Katong Square into a brand-new hotel following among one of the Accor brands. Besides, Katong Plaza is located in prime District 15 in the eastern side and just 120m from the Marine Parade MRT Terminal on the Thomson-East Coast Line and the Parkway Parade shopping mall.
The existing growth covers an overall acreage of 34,044 sq ft with a gross plot ratio of 3.0. This works out to a highest gross floor space of 102,132 sq ft.
Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Many other hotels nearby consist of Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
