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 regulated by billionaire real estate developer and hotelier James Koh, the director of both companies. Global Premium Hotels has a profile of labels, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and global lodging team Accor tied up to open 13 new ibis Budget accommodations, that were previously Fragrance-branded hotels, along with bringing in the ibis Styles and Mercure brand names.
“Our team believe this transaction will certainly increase confidence in the collective sale industry as developers still go after appealing land plots,” says Lian.
It is presently zoned for business and residential usage but has gotten URA approval for resort use. Lian projections that the brand-new hotel could produce of 300 and 340 rooms.
Last month, Fragrance Group and Global Premium Hotels authorized one more contract with Accor to open up two new-build properties with 3 brand-new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, that will be the biggest Mövenpick lodging in the Asia Pacific region. It will additionally house Mövenpick Living Singapore, a 37-key hotels targeted at visitors looking for prolonged visits.
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 houses. Proprietors of the retail units will be obtaining proceeds varying from $502,000 to over $6 million, whilst home owners will be getting in between $2 million and $5.1 million, indicates Terence Lian, Huttons Asia’s head of financial investment sales who agented the offer.
The existing growth covers a total acreage of 34,044 sq ft with a complete plot ratio of 3.0. This calculates to a maximum gross floor area of 102,132 sq ft.
Katong Plaza is alongside Roxy Square and the Grand Mercure Roxy Singapore. Many other accommodations close-by consist of Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.
Fragrance Group could likely redevelop Katong Square right into a new hotel within among one of the Accor labels. Nevertheless, Katong Plaza lies in prime District 15 in the eastern side and only 120m from the Marine Parade MRT Terminal on the Thomson-East Coast Line and the Parkway Parade shopping center.
The other property, situated at Waterloo Road, will be a brand-new 502-room resort under the Handwritten Collection brand of Accor. It is a redevelopment of the previous Min Yuan Apartments that Fragrance Group got 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 sites were integrated, and URA authorization was acquired for redevelopment right into a 500-room resort.
Real property developer Fragrance Group has already gotten Katong Plaza in Marine Parade for $180 million. The transaction price converts to a land rate of $1,809 psf per plot ratio (psf ppr), consisting of the land betterment cost.
