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

It is presently zoned for commercial and residential use but has received URA authorization for resort usage. Lian projections that the brand-new hotel could produce between 300 and 340 rooms.

The other real estate, situated at Waterloo Street, will be a brand-new 502-room resort under the Handwritten Collection brand name of Accor. It is a redevelopment of the previous Min Yuan Apartments that 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. The two 999-year leasehold locations were joined together, and URA authorization was obtained for redevelopment into a 500-room resort.

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 apartments. Proprietors of the retail units will be getting earnings ranging from $502,000 to over $6 million, while residential proprietors will certainly be acquiring between $2 million and $5.1 million, mentions Terence Lian, Huttons Asia’s head of investment sales who brokered the offer.

Last month, Fragrance Team and Global Premium Hotels signed an additional contract with Accor to open 2 new-build properties with three new lodgings by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, which will be the biggest Mövenpick lodging in the Asia Pacific region. It will also house Mövenpick Living Singapore, a 37-key accommodation targeted at travellers looking for lengthened stays.

Fragrance Group could possibly redevelop Katong Square into a brand-new accommodation under among one of the Accor labels. After all, Katong Plaza lies 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.

Lentoria Hong Leong Group & Mitsui Fudosan

Fragrance Group and its accommodation arm, Global Premium Hotels, are controlled by billionaire real estate builder and hotelier James Koh, the chairperson of both firms. Global Premium Hotels has a collection of brands, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas hotels and resort team Accor locked up to open 13 brand-new ibis Budget hotels, which were previously Fragrance-branded hotels, together with generating the ibis Styles and Mercure brands.

“We believe this sale will certainly improve trust in the collective sale industry as property developers remain to pursue desirable land parcels,” states Lian.

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

Property developer Fragrance Group has 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.

The existing advancement spans a total land area of 34,044 sq ft with a gross plot ratio of 3.0. This calculates to a max gross floor area of 102,132 sq ft.


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