Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
Previous month, Fragrance Group and Global Premium Hotels signed an additional agreement with Accor to open 2 new-build properties with three brand-new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, which will be the biggest Mövenpick hotel in the Asia Pacific place. It will additionally house Mövenpick Living Singapore, a 37-key hotels focused at visitors seeking extended stays.
Katong Plaza is beside Roxy Square and the Grand Mercure Roxy Singapore. Different inns close-by such as 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 real property developer and hotelier James Koh, the chairman of both business. Global Premium Hotels has a profile of brands, featuring the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and international lodging group Accor locked up to open 13 new ibis Budget accommodations, that were formerly Fragrance-branded hotels, along with generating the ibis Styles and Mercure brands.
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 flats. Owners of the retail units are going to be getting profits extending from $502,000 to over $6 million, whereas household owners will be obtaining between $2 million and $5.1 million, notes Terence Lian, Huttons Asia’s head of financial investment sales that brokered the deal.
“We believe this sale will boost trust in the cumulative sale industry as property developers continue to seek appealing land parcels,” states Lian.
It is currently zoned for business and residential use but has received URA authorization for resort use. Lian projections that the brand-new hotel could generate between 300 and 340 rooms.
The existing advancement spans a complete land area of 34,044 sq ft with a gross plot ratio of 3.0. This works out to a max gross floor space of 102,132 sq ft.
Fragrance Group might likely redevelop Katong Square right into a new accommodation following 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 mall.
Real estate developer Fragrance Team has already gotten Katong Plaza in Marine Parade for $180 million. The transaction price translates to a land rate of $1,809 psf per plot ratio (psf ppr), consisting of the land betterment charge.
The other real estate, based at Waterloo Street, are going to be a new 502-room lodging under the Handwritten Collection brand name 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 acquired in November 2018 for $131.1 million. Both 999-year leasehold sites were integrated, and URA authorization was acquired for redevelopment right into a 500-room resort.