Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
The various other real estate, located at Waterloo Road, are going to be a new 502-room hotel under the Handwritten Collection brand name of Accor. It is a redevelopment of the past Min Yuan Apartments which Fragrance Team obtained 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 into a 500-room hotel.
The existing development spans a total land area 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.
“We believe this purchase will certainly improve confidence in the cumulative sale industry as builders remain to pursue desirable land parcels,” states Lian.
Fragrance Group might likely redevelop Katong Square right into a new hotel under among one of the Accor brands. Nevertheless, Katong Plaza lies in prime District 15 in the east and only 120m from the Marine Parade MRT Stop on the Thomson-East Coast Line and the Parkway Parade mall.
Fragrance Group and its hospitality arm, Global Premium Hotels, are regulated by billionaire property developer and hotelier James Koh, the chairperson of both companies. Global Premium Hotels has a profile of labels, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas hotels and resort group Accor locked up to open 13 brand-new ibis Budget hotels, that were in the past Fragrance-branded hotels, in addition to generating 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. Proprietors of the retail units will be receiving proceeds extending from $502,000 to over $6 million, whilst residential proprietors will be getting in between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of financial investment sales who brokered the deal.
It is at the moment zoned for business and residential usage but has actually obtained URA approval for resort use. Lian projections that the brand-new hotel might yield of 300 and 340 rooms.
Last month, Fragrance Team and Global Premium Hotels signed an additional agreement with Accor to open up two new-build properties with three brand-new lodgings by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, that will be the biggest Mövenpick lodging in the Asia Pacific location. It will additionally house Mövenpick Living Singapore, a 37-key accommodation targeted at travellers looking for extended visits.
Real estate developer Fragrance Group has already gotten Katong Plaza in Marine Parade for $180 million. The transaction price equates to a land rate of $1,809 psf per plot ratio (psf ppr), featuring the land improvement fee.
Katong Plaza is next to 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.
