Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
Real property developer Fragrance Team has 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 cost.
It is at the moment zoned for commercial and non commercial use however has obtained URA authorization for resort use. Lian quotes that the brand-new hotel might produce of 300 and 340 rooms.
“Our company believe this sale will increase assurance in the collective sale sector as builders remain to go after attractive land plots,” states Lian.
Last month, Fragrance Group and Global Premium Hotels authorized another arrangement with Accor to open 2 new-build properties with 3 new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, which will certainly be the biggest Mövenpick lodging 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 accommodation arm, Global Premium Hotels, are controlled by billionaire real property developer and hotelier James Koh, the director of both companies. Global Premium Hotels has a portfolio of companies, featuring the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and international hotels and resort team Accor bound to open 13 new ibis Budget lodgings, which were previously Fragrance-branded resorts, together with generating the ibis Styles and Mercure labels.
Fragrance Group can possibly redevelop Katong Square right into a brand-new accommodation within among one of the Accor labels. Nevertheless, Katong Plaza lies in prime District 15 in the east and only 120m from the Marine Parade MRT Terminal on the Thomson-East Coast Line and the Parkway Parade mall.
The existing growth spans a complete acreage of 34,044 sq ft with a total plot ratio of 3.0. This turns out to a highest gross flooring area of 102,132 sq ft.
Katong Plaza is a freehold commercial and residential mixed-use project located at 1 Brooke Roadway. It has 132 strata retail units and 14 household houses. Proprietors of the retail units will be obtaining proceeds ranging from $502,000 to over $6 million, while home owners will be acquiring between $2 million and $5.1 million, mentions Terence Lian, Huttons Asia’s head of investment sales who brokered the offer.
The various other real estate, based at Waterloo Road, 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 acquired en bloc for $141 million in September 2019; and the former Waterloo Apartments, which it obtained in November 2018 for $131.1 million. The two 999-year leasehold locations were joined together, and URA authorization was acquired for redevelopment right into a 500-room hotel.
Katong Plaza is alongside Roxy Square and the Grand Mercure Roxy Singapore. Many other inns close consist of Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.