Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
Fragrance Group might possibly redevelop Katong Square right into a new lodging under one of the Accor labels. Besides, Katong Plaza is located in prime District 15 in the eastern side and just 120m from the Marine Parade MRT Stop on the Thomson-East Coast Line and the Parkway Parade shopping mall.
“Our company believe this sale will certainly improve confidence in the collective sale industry as developers continue to seek appealing land parcels,” states Lian.
Real property developer Fragrance Team has gotten Katong Plaza in Marine Parade for $180 million. The purchase price translates to a land rate of $1,809 psf per plot ratio (psf ppr), featuring the land improvement charge.
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The other property, situated at Waterloo Road, will be a new 502-room hotel 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 locations were amalgamated, and URA approval was obtained for redevelopment into a 500-room hotel.
Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Many other accommodations close such as Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
The existing advancement spans an overall acreage of 34,044 sq ft with a complete plot ratio of 3.0. This turns out to a maximum gross flooring space of 102,132 sq ft.
It is currently zoned for business and residential use however has gotten URA authorization for hotel use. Lian quotes that the new hotel could generate around 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 hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, which will certainly be the biggest Mövenpick hotel in the Asia Pacific place. It will also house Mövenpick Living Singapore, a 37-key hotels targeted at travellers seeking prolonged stays.
Fragrance Group and its hospitality arm, Global Premium Hotels, are regulated by billionaire real estate builder and hotelier James Koh, the chairperson of both firms. Global Premium Hotels has a profile of brands, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas hotel team Accor locked up to open up 13 brand-new ibis Budget lodgings, that were in the past Fragrance-branded hotels, along with bringing in the ibis Styles and Mercure brands.
Katong Plaza is a freehold commercial and residential mixed-use development located at 1 Brooke Road. It has 132 strata retail units and 14 non commercial houses. Owners of the retail units are going to be getting earnings extending from $502,000 to over $6 million, while household proprietors will be acquiring in between $2 million and $5.1 million, mentions Terence Lian, Huttons Asia’s head of financial investment sales that brokered the offer.
