Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel

Property developer Fragrance Team has already gotten Katong Plaza in Marine Parade for $180 million. The sale price equates to a land rate of $1,809 psf per plot ratio (psf ppr), featuring the land improvement charge.

The various other real property, based at Waterloo Street, will be a new 502-room lodging under the Handwritten Collection brand of Accor. It is a redevelopment of the former Min Yuan Apartments which Fragrance Team obtained 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 approval was obtained for redevelopment into a 500-room hotel.

Last month, Fragrance Group and Global Premium Hotels authorized another arrangement with Accor to open up 2 new-build real estates with three new lodgings by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, which will be the biggest Mövenpick hotel in the Asia Pacific region. It will certainly additionally house Mövenpick Living Singapore, a 37-key accommodation intended at tourists looking for prolonged stays.

The existing advancement spans a complete acreage of 34,044 sq ft with a total plot ratio of 3.0. This turns out to a max gross flooring area of 102,132 sq ft.

Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Different hotel and resorts close-by consist of Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.

Katong Plaza is a freehold commercial and residential mixed-use development located at 1 Brooke Roadway. It has 132 strata retail units and 14 non commercial apartments. Proprietors of the retail units are going to be obtaining earnings varying from $502,000 to over $6 million, whilst residential proprietors will be acquiring between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of financial investment sales who brokered the deal.

Fragrance Group might possibly redevelop Katong Square into a new lodging under one of the Accor brands. Nevertheless, Katong Plaza is located in top 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.

Fragrance Group and its accommodation arm, Global Premium Hotels, are managed by billionaire property real estate investor and hotelier James Koh, the chairperson of both firms. Global Premium Hotels has a profile of companies, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and international hotels and resort group Accor locked up to open up 13 brand-new ibis Budget accommodations, that were formerly Fragrance-branded resorts, together with bringing in the ibis Styles and Mercure brand names.

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It is at the moment zoned for commercial and residential usage however has actually received URA approval for hotel usage. Lian quotes that the new hotel can produce of 300 and 340 rooms.

“Our team believe this transaction will certainly improve assurance in the cumulative sale industry as property developers still seek desirable land parcels,” claims Lian.


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