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 up two new-build real estates with 3 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 visitors looking for extended visits.
The various other property, situated at Waterloo Road, will be a brand-new 502-room hotel under the Handwritten Collection brand name of Accor. It is a redevelopment of the former Min Yuan Apartments that Fragrance Group acquired 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 locations were integrated, and URA authorization was gotten for redevelopment right into a 500-room hotel.
Property developer Fragrance Group has recently acquired Katong Plaza in Marine Parade for $180 million. The transaction price converts to a land rate of $1,809 psf per plot ratio (psf ppr), including the land betterment fee.
“We believe this purchase will boost assurance in the collective sale market as builders still seek appealing land parcels,” states Lian.
Fragrance Group might possibly redevelop Katong Square into a brand-new hotel within one of the Accor brands. After all, Katong Plaza is located in top District 15 in the east and just 120m from the Marine Parade MRT Station on the Thomson-East Coast Line and the Parkway Parade mall.
Katong Plaza is a freehold commercial and residential mixed-use development located at 1 Brooke Roadway. It has 132 strata retail units and 14 residential residences. Proprietors of the retail units are going to be obtaining earnings extending from $502,000 to over $6 million, while home proprietors will be acquiring in between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of investment sales who brokered the offer.
Lakegarden Residences Singapore
Katong Plaza is alongside Roxy Square and the Grand Mercure Roxy Singapore. Different inns close-by include Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
The existing advancement spans a complete acreage of 34,044 sq ft with a complete plot ratio of 3.0. This turns out to a highest gross flooring space of 102,132 sq ft.
Fragrance Group and its accommodation arm, Global Premium Hotels, are regulated by billionaire real estate real estate investor and hotelier James Koh, the chairman of both business. Global Premium Hotels has a profile of companies, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and international hotel team Accor tied up to open 13 new ibis Budget hotels, which were formerly Fragrance-branded hotels, in addition to generating the ibis Styles and Mercure brand names.
It is at the moment zoned for commercial and residential usage however has gotten URA approval for hotel usage. Lian estimates that the new hotel could produce between 300 and 340 rooms.
