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

The existing growth covers a total acreage of 34,044 sq ft with a complete plot ratio of 3.0. This turns out to a highest gross floor area of 102,132 sq ft.

It is presently zoned for commercial and non commercial usage but has gotten URA approval for resort usage. Lian projections that the new hotel could generate around 300 and 340 rooms.

Katong Plaza is a freehold commercial and residential mixed-use development located at 1 Brooke Roadway. It has 132 strata retail units and 14 household residences. Owners of the retail units are going to be obtaining proceeds extending from $502,000 to over $6 million, while household proprietors will certainly be obtaining between $2 million and $5.1 million, notes Terence Lian, Huttons Asia’s head of investment sales that brokered the offer.

Last month, Fragrance Team and Global Premium Hotels authorized another arrangement with Accor to open up two new-build real estates with three brand-new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, that will certainly be the biggest Mövenpick lodging in the Asia Pacific region. It will certainly also house Mövenpick Living Singapore, a 37-key lodging focused at tourists looking for prolonged stays.

The other real estate, located at Waterloo Road, will be a brand-new 502-room resort under the Handwritten Collection brand of Accor. It is a redevelopment of the former Min Yuan Apartments that Fragrance Group obtained en bloc for $141 million in September 2019; and the former Waterloo Apartments, which it acquired in November 2018 for $131.1 million. The two 999-year leasehold sites were amalgamated, and URA approval was obtained for redevelopment right into a 500-room hotel.

Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Other hotel and resorts nearby such as Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.

“We believe this sale will certainly enhance confidence in the cumulative sale industry as property developers continue to seek attractive land parcels,” says Lian.

Norwood Grand condominium

Fragrance Group and its accommodation arm, Global Premium Hotels, are controlled by billionaire real property real estate investor and hotelier James Koh, the director of both companies. Global Premium Hotels has a collection of companies, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas lodging team Accor locked up to open 13 brand-new ibis Budget accommodations, which were in the past Fragrance-branded resorts, together with bringing in the ibis Styles and Mercure brand names.

Fragrance Group could possibly redevelop Katong Square right into a brand-new lodging within among one of the Accor brands. After all, Katong Plaza is located in prime District 15 in the east and just 120m from the Marine Parade MRT Station on the Thomson-East Coast Line and the Parkway Parade shopping mall.

Property 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 cost.


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