Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
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 flats. Owners of the retail units are going to be receiving proceeds ranging from $502,000 to over $6 million, whereas residential proprietors will be obtaining in between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of financial investment sales who brokered the agreement.
Real estate developer Fragrance Group has obtained Katong Plaza in Marine Parade for $180 million. The transaction price translates to a land rate of $1,809 psf per plot ratio (psf ppr), featuring the land betterment charge.
Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Other hotel and resorts close-by include Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
Previous month, Fragrance Group and Global Premium Hotels authorized an additional arrangement with Accor to open up two new-build properties with 3 brand-new lodgings by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, which will be the biggest Mövenpick hotel in the Asia Pacific place. It will additionally house Mövenpick Living Singapore, a 37-key lodging focused at travellers seeking prolonged visits.
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Fragrance Group can likely redevelop Katong Square right into a new hotel under among one of the Accor labels. Besides, Katong Plaza is located 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 center.
Fragrance Group and its accommodation arm, Global Premium Hotels, are managed by billionaire real property real estate investor and hotelier James Koh, the chairperson of both companies. Global Premium Hotels has a collection of labels, featuring the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and international hotel group Accor tied up to open up 13 new ibis Budget hotels, that were formerly Fragrance-branded resorts, together with bringing in the ibis Styles and Mercure brands.
It is at the moment zoned for commercial and residential use but has actually gotten URA approval for hotel use. Lian estimates that the new hotel could yield between 300 and 340 rooms.
The existing advancement covers an overall acreage of 34,044 sq ft with a total plot ratio of 3.0. This works out to a maximum gross floor area of 102,132 sq ft.
The other real property, based at Waterloo Road, will be a new 502-room resort under the Handwritten Collection brand of Accor. It is a redevelopment of the former Min Yuan Apartments that Fragrance Group 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 joined together, and URA authorization was acquired for redevelopment right into a 500-room hotel.
“Our team believe this transaction will improve assurance in the collective sale market as developers continue to pursue attractive land plots,” states Lian.
