Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel
Real estate developer Fragrance Team has acquired 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), including the land improvement cost.
Previous month, Fragrance Group and Global Premium Hotels signed another agreement with Accor to open 2 new-build real estates with three brand-new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, which will be the largest Mövenpick hotel in the Asia Pacific region. It will also house Mövenpick Living Singapore, a 37-key accommodation focused at travellers looking for prolonged stays.
Fragrance Group and its accommodation arm, Global Premium Hotels, are controlled by billionaire property developer and hotelier James Koh, the director of both companies. Global Premium Hotels has a portfolio of brands, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and global hotel group Accor bound to open up 13 new ibis Budget accommodations, which were formerly Fragrance-branded resorts, along with bringing in the ibis Styles and Mercure labels.
Lumina Grand Bukit Batok West Avenue 5
The various other real property, situated at Waterloo Street, 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 got 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 locations were joined together, and URA authorization was obtained for redevelopment into a 500-room resort.
Lumina Grand
It is at the moment zoned for commercial and non commercial use but has actually received URA authorization for resort use. Lian projections that the new hotel might generate around 300 and 340 rooms.
Fragrance Group might potentially redevelop Katong Square right into a brand-new lodging under one of the Accor companies. After all, Katong Plaza lies 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.
Katong Plaza is a freehold commercial and residential mixed-use project located at 1 Brooke Road. It has 132 strata retail units and 14 household apartments. Owners of the retail units will be getting profits varying from $502,000 to over $6 million, while residential proprietors will certainly be getting between $2 million and $5.1 million, mentions Terence Lian, Huttons Asia’s head of investment sales who agented the deal.
“We believe this transaction will certainly enhance assurance in the cumulative sale industry as property developers still seek desirable land plots,” states Lian.
The existing advancement spans a total acreage of 34,044 sq ft with a total plot ratio of 3.0. This calculates to a max gross floor space of 102,132 sq ft.
Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Many other hotel and resorts nearby include Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
