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 Road. It has 132 strata retail units and 14 household apartments. Proprietors of the retail units are going to be getting earnings ranging from $502,000 to over $6 million, while household owners will certainly be getting in between $2 million and $5.1 million, notes Terence Lian, Huttons Asia’s head of investment sales who brokered the offer.
Previous month, Fragrance Team and Global Premium Hotels authorized one more contract with Accor to open two new-build properties with 3 brand-new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, which will be the biggest Mövenpick hotel in the Asia Pacific region. It will certainly also house Mövenpick Living Singapore, a 37-key lodging intended at visitors seeking prolonged visits.
“Our company believe this sale will improve trust in the collective sale market as builders still pursue attractive land parcels,” claims Lian.
Fragrance Group can likely redevelop Katong Square right into a brand-new hotel following among one of the Accor brands. After all, Katong Plaza lies 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 mall.
The various other real estate, located at Waterloo Street, will be a new 502-room lodging under the Handwritten Collection brand of Accor. It is a redevelopment of the former Min Yuan Apartments that Fragrance Team acquired 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 integrated, and URA approval was obtained for redevelopment right into a 500-room resort.
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 firms. Global Premium Hotels has a profile of companies, featuring the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and international lodging team Accor locked up to open 13 brand-new ibis Budget hotels, which were in the past Fragrance-branded hotels, along with generating the ibis Styles and Mercure labels.
Real property developer Fragrance Team has gotten 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), consisting of the land betterment fee.
The existing growth covers a complete land area of 34,044 sq ft with a gross plot ratio of 3.0. This works out to a maximum gross flooring space of 102,132 sq ft.
Katong Plaza is next to Roxy Square and the Grand Mercure Roxy Singapore. Other inns nearby such as Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
It is at the moment zoned for business and non commercial usage however has actually gotten URA approval for hotel use. Lian quotes that the brand-new hotel might yield of 300 and 340 rooms.