Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
The various other property, situated at Waterloo Road, will be a new 502-room resort under the Handwritten Collection brand name of Accor. It is a redevelopment of the past Min Yuan Apartments that Fragrance Team obtained 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 integrated, and URA approval was obtained for redevelopment right into a 500-room hotel.
The existing advancement covers a total land area of 34,044 sq ft with a gross plot ratio of 3.0. This calculates to a maximum gross floor space of 102,132 sq ft.
Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Other hotels close consist of Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
Fragrance Group could likely redevelop Katong Square into a new lodging within among one of the Accor brands. After all, Katong Plaza lies in prime District 15 in the east and just 120m from the Marine Parade MRT Terminal on the Thomson-East Coast Line and the Parkway Parade shopping center.
Last month, Fragrance Group and Global Premium Hotels signed an additional contract with Accor to open two new-build real estates with 3 brand-new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, that will be the biggest Mövenpick lodging in the Asia Pacific region. It will additionally house Mövenpick Living Singapore, a 37-key hotels intended at visitors seeking prolonged visits.
Property developer Fragrance Group has acquired Katong Plaza in Marine Parade for $180 million. The sale price converts to a land rate of $1,809 psf per plot ratio (psf ppr), featuring the land improvement cost.
Fragrance Group and its accommodation arm, Global Premium Hotels, are managed by billionaire real property builder and hotelier James Koh, the director of both companies. Global Premium Hotels has a portfolio of labels, featuring the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas hotels and resort team Accor tied up to open up 13 brand-new ibis Budget lodgings, which were in the past Fragrance-branded resorts, together with bringing in the ibis Styles and Mercure labels.
Katong Plaza is a freehold commercial and residential mixed-use project located at 1 Brooke Road. It has 132 strata retail units and 14 residential houses. Owners of the retail units will be getting earnings varying from $502,000 to over $6 million, whilst home proprietors will be acquiring in between $2 million and $5.1 million, mentions Terence Lian, Huttons Asia’s head of financial investment sales that brokered the offer.
“We believe this purchase will certainly improve trust in the collective sale industry as property developers remain to go after desirable land parcels,” says Lian.
It is currently zoned for commercial and residential use but has gotten URA approval for resort usage. Lian estimates that the brand-new hotel might generate around 300 and 340 rooms.
