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

Katong Plaza is a freehold commercial and residential mixed-use project located at 1 Brooke Road. It has 132 strata retail units and 14 non commercial flats. Owners of the retail units will be receiving profits extending from $502,000 to over $6 million, while residential owners will be obtaining in between $2 million and $5.1 million, notes Terence Lian, Huttons Asia’s head of investment sales that agented the offer.

The other property, situated at Waterloo Street, are going to be a new 502-room lodging under the Handwritten Collection brand of Accor. It is a redevelopment of the previous 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 sites were joined together, and URA approval was obtained for redevelopment right into a 500-room resort.

“We believe this purchase will increase assurance in the collective sale industry as developers continue to seek desirable land plots,” says Lian.

Fragrance Group might likely redevelop Katong Square right into a brand-new accommodation under one of the Accor labels. After all, Katong Plaza is located in prime District 15 in the eastern side and only 120m from the Marine Parade MRT Terminal on the Thomson-East Coast Line and the Parkway Parade shopping mall.

Hillock Green Lentor Central

Fragrance Group and its hospitality arm, Global Premium Hotels, are regulated by billionaire real estate builder and hotelier James Koh, the director of both firms. Global Premium Hotels has a profile of labels, featuring the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas hotel group Accor bound to open 13 new ibis Budget accommodations, that were formerly Fragrance-branded resorts, along with bringing in the ibis Styles and Mercure brands.

Real estate developer Fragrance Group has recently obtained 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 fee.

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

Last month, Fragrance Team and Global Premium Hotels signed an additional arrangement with Accor to open up 2 new-build real estates with three brand-new lodgings by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, that will certainly be the largest Mövenpick lodging in the Asia Pacific place. It will also house Mövenpick Living Singapore, a 37-key lodging intended at tourists looking for extended visits.

The existing advancement covers a complete acreage of 34,044 sq ft with a complete plot ratio of 3.0. This turns out to a max gross floor space of 102,132 sq ft.

It is at the moment zoned for business and residential usage but has actually gotten URA authorization for hotel use. Lian quotes that the new hotel can produce of 300 and 340 rooms.


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