Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
Property developer Fragrance Group has obtained 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), consisting of the land improvement charge.
The existing development covers a total acreage of 34,044 sq ft with a gross plot ratio of 3.0. This works out to a highest gross floor area of 102,132 sq ft.
Last month, Fragrance Group and Global Premium Hotels authorized an additional contract with Accor to open 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 hotels focused at tourists looking for extended stays.
Katong Plaza is alongside Roxy Square and the Grand Mercure Roxy Singapore. Many other inns close include Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
The various other real property, situated at Waterloo Street, are going to be a brand-new 502-room lodging under the Handwritten Collection brand of Accor. It is a redevelopment of the former Min Yuan Apartments that Fragrance Team got en bloc for $141 million in September 2019; and the former Waterloo Apartments, which it got in November 2018 for $131.1 million. The two 999-year leasehold locations were amalgamated, and URA approval was acquired for redevelopment right into a 500-room resort.
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 are going to be getting profits ranging from $502,000 to over $6 million, whereas residential owners will certainly be acquiring in between $2 million and $5.1 million, notes Terence Lian, Huttons Asia’s head of investment sales who agented the arrangement.
Kassia Condo showflat location
“Our company believe this sale will improve trust in the collective sale market as developers still go after attractive land parcels,” claims Lian.
It is at the moment zoned for business and residential use however has actually received URA approval for resort usage. Lian estimates that the new hotel can yield around 300 and 340 rooms.
Fragrance Group can potentially redevelop Katong Square into a brand-new accommodation within among one of the Accor brands. After all, Katong Plaza is located in prime District 15 in the eastern side and just 120m from the Marine Parade MRT Station on the Thomson-East Coast Line and the Parkway Parade shopping center.
Fragrance Group and its accommodation arm, Global Premium Hotels, are regulated by billionaire real estate real estate investor and hotelier James Koh, the chairperson of both business. Global Premium Hotels has a collection of labels, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and global hotels and resort team Accor tied up to open up 13 new ibis Budget hotels, which were previously Fragrance-branded hotels, along with generating the ibis Styles and Mercure labels.