Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
The existing advancement spans a total land area of 34,044 sq ft with a total plot ratio of 3.0. This turns out to a max gross flooring 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 residential apartments. Proprietors of the retail units will be getting earnings varying from $502,000 to over $6 million, whilst household owners will be obtaining in between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of financial investment sales who brokered the deal.
The various other property, situated at Waterloo Road, are going to be a new 502-room resort under the Handwritten Collection brand of Accor. It is a redevelopment of the previous Min Yuan Apartments which Fragrance Team got en bloc for $141 million in September 2019; and the former Waterloo Apartments, which it obtained in November 2018 for $131.1 million. Both 999-year leasehold locations were amalgamated, and URA authorization was gotten for redevelopment into a 500-room resort.
Real estate developer Fragrance Group has acquired Katong Plaza in Marine Parade for $180 million. The sale price translates to a land rate of $1,809 psf per plot ratio (psf ppr), featuring the land betterment charge.
Fragrance Group can likely redevelop Katong Square right into a brand-new hotel under among one of the Accor labels. After all, Katong Plaza lies 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 mall.
Katong Plaza is alongside 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.
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 business. Global Premium Hotels has a portfolio of brands, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and global hotel group Accor tied up to open up 13 new ibis Budget lodgings, that were formerly Fragrance-branded hotels, in addition to bringing in the ibis Styles and Mercure labels.
“We believe this sale will certainly boost confidence in the cumulative sale market as property developers remain to go after attractive land parcels,” states Lian.
It is currently zoned for commercial and non commercial usage however has received URA authorization for resort usage. Lian projections that the new hotel might generate between 300 and 340 rooms.
Previous month, Fragrance Team and Global Premium Hotels authorized another agreement with Accor to open two new-build real estates with three new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, which will be the largest Mövenpick hotel in the Asia Pacific place. It will certainly additionally house Mövenpick Living Singapore, a 37-key accommodation targeted at visitors seeking lengthened visits.