Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
Fragrance Group and its hospitality arm, Global Premium Hotels, are managed by billionaire real estate builder and hotelier James Koh, the chairperson of both firms. Global Premium Hotels has a profile of companies, featuring the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and global lodging group Accor bound to open up 13 brand-new ibis Budget accommodations, that were previously Fragrance-branded hotels, in addition to bringing in the ibis Styles and Mercure labels.
The various other property, located at Waterloo Road, are going to be a brand-new 502-room lodging under the Handwritten Collection brand of Accor. It is a redevelopment of the previous Min Yuan Apartments that Fragrance Team 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 locations were integrated, and URA approval was acquired for redevelopment right into a 500-room hotel.
It is at the moment zoned for commercial and non commercial use however has obtained URA authorization for resort usage. Lian projections that the brand-new hotel could yield of 300 and 340 rooms.
Real property developer Fragrance Team has recently acquired Katong Plaza in Marine Parade for $180 million. The sale price converts to a land rate of $1,809 psf per plot ratio (psf ppr), featuring the land betterment charge.
Fragrance Group can potentially redevelop Katong Square right into a new accommodation within one of the Accor companies. Besides, Katong Plaza is located in top District 15 in the eastern side and just 120m from the Marine Parade MRT Terminal on the Thomson-East Coast Line and the Parkway Parade mall.
The existing development spans a complete land area of 34,044 sq ft with a total plot ratio of 3.0. This turns out to a max gross floor space of 102,132 sq ft.
“Our team believe this transaction will certainly improve trust in the collective sale sector as builders continue to go after appealing land plots,” says Lian.
Katong Plaza is a freehold commercial and residential mixed-use development located at 1 Brooke Road. It has 132 strata retail units and 14 non commercial flats. Owners of the retail units are going to be getting earnings extending from $502,000 to over $6 million, whilst home proprietors will certainly be getting between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of financial investment sales that agented the agreement.
Katong Plaza is alongside Roxy Square and the Grand Mercure Roxy Singapore. Other hotel and resorts nearby consist of Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
Previous month, Fragrance Group and Global Premium Hotels authorized another arrangement with Accor to open up two new-build properties with three brand-new lodgings by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, that will certainly be the largest Mövenpick hotel in the Asia Pacific location. It will certainly additionally house Mövenpick Living Singapore, a 37-key hotels targeted at tourists seeking lengthened stays.
