Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
The existing growth spans a complete acreage of 34,044 sq ft with a gross plot ratio of 3.0. This turns out to a max gross floor space of 102,132 sq ft.
The other real estate, based at Waterloo Road, are going to be a new 502-room lodging under the Handwritten Collection brand name of Accor. It is a redevelopment of the past Min Yuan Apartments that Fragrance Group 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 sites were joined together, and URA approval was acquired for redevelopment into a 500-room resort.
Real property developer Fragrance Group has recently gotten Katong Plaza in Marine Parade for $180 million. The purchase price converts to a land rate of $1,809 psf per plot ratio (psf ppr), including the land betterment charge.
Katong Plaza is a freehold commercial and residential mixed-use development located at 1 Brooke Road. It has 132 strata retail units and 14 household flats. Owners of the retail units will be getting proceeds ranging from $502,000 to over $6 million, whereas household owners will certainly be getting in between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of financial investment sales who agented the offer.
Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Many other hotels close-by include Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
Last month, Fragrance Team and Global Premium Hotels signed an additional agreement with Accor to open up 2 new-build real estates with 3 brand-new lodgings 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 place. It will additionally house Mövenpick Living Singapore, a 37-key accommodation targeted at visitors looking for lengthened stays.
It is presently zoned for commercial and non commercial usage however has actually received URA authorization for hotel usage. Lian quotes that the brand-new hotel might yield of 300 and 340 rooms.
Fragrance Group can likely redevelop Katong Square right into a new hotel following among one of the Accor companies. Nevertheless, Katong Plaza lies in top District 15 in the east and only 120m from the Marine Parade MRT Stop on the Thomson-East Coast Line and the Parkway Parade shopping center.
Fragrance Group and its hospitality arm, Global Premium Hotels, are controlled by billionaire real property real estate investor and hotelier James Koh, the chairperson of both business. Global Premium Hotels has a collection of brands, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas lodging team Accor tied up to open 13 new ibis Budget lodgings, which were previously Fragrance-branded resorts, in addition to bringing in the ibis Styles and Mercure labels.
“We believe this purchase will certainly boost assurance in the collective sale market as builders remain to go after attractive land plots,” says Lian.