Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
Katong Plaza is beside Roxy Square and the Grand Mercure Roxy Singapore. Many other inns close-by consist of Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
The existing growth spans a complete acreage of 34,044 sq ft with a gross plot ratio of 3.0. This works out to a highest gross flooring area of 102,132 sq ft.
Fragrance Group and its accommodation arm, Global Premium Hotels, are regulated by billionaire real property builder and hotelier James Koh, the chairperson of both business. Global Premium Hotels has a collection of brands, featuring the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and overseas hotels and resort team Accor locked up to open up 13 new ibis Budget lodgings, that were in the past Fragrance-branded hotels, together with bringing in the ibis Styles and Mercure labels.
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. Proprietors of the retail units are going to be receiving profits ranging from $502,000 to over $6 million, while household owners will certainly be getting between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of investment sales who brokered the offer.
Previous month, Fragrance Group and Global Premium Hotels signed another arrangement with Accor to open up 2 new-build real estates with 3 brand-new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, that will certainly be the largest Mövenpick lodging in the Asia Pacific region. It will certainly additionally house Mövenpick Living Singapore, a 37-key accommodation focused at visitors seeking extended visits.
“Our team believe this transaction will certainly enhance assurance in the cumulative sale industry as developers continue to pursue attractive land parcels,” says Lian.
The various other real estate, situated at Waterloo Road, are going to be a new 502-room lodging under the Handwritten Collection brand of Accor. It is a redevelopment of the previous Min Yuan Apartments that Fragrance Group obtained en bloc for $141 million in September 2019; and the former Waterloo Apartments, which it got in November 2018 for $131.1 million. Both 999-year leasehold sites were joined together, and URA approval was acquired for redevelopment right into a 500-room hotel.
It is currently zoned for commercial and residential use however has gotten URA authorization for hotel usage. Lian estimates that the new hotel can generate between 300 and 340 rooms.
Property developer Fragrance Group has recently gotten Katong Plaza in Marine Parade for $180 million. The purchase price equates to a land rate of $1,809 psf per plot ratio (psf ppr), featuring the land improvement charge.
Fragrance Group could potentially redevelop Katong Square into a brand-new hotel under one of the Accor labels. After all, Katong Plaza is located in top District 15 in the east and just 120m from the Marine Parade MRT Terminal on the Thomson-East Coast Line and the Parkway Parade shopping mall.
