Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel

Katong Plaza is alongside Roxy Square and the Grand Mercure Roxy Singapore. Different hotels close-by such as Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.

It is presently zoned for business and non commercial usage however has actually received URA authorization for hotel use. Lian quotes that the brand-new hotel can produce between 300 and 340 rooms.

Fragrance Group might potentially redevelop Katong Square right into a brand-new lodging under among one of the Accor brands. Nevertheless, Katong Plaza lies in prime District 15 in the east and only 120m from the Marine Parade MRT Station on the Thomson-East Coast Line and the Parkway Parade shopping center.

Fragrance Group and its hospitality arm, Global Premium Hotels, are controlled by billionaire real estate real estate investor 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 lodging team Accor bound to open up 13 brand-new ibis Budget lodgings, which were previously Fragrance-branded resorts, together with generating the ibis Styles and Mercure brands.

The existing advancement covers an overall land area of 34,044 sq ft with a complete plot ratio of 3.0. This works out to a highest gross flooring space of 102,132 sq ft.

“Our team believe this transaction will certainly increase confidence in the collective sale sector as property developers remain to pursue appealing land parcels,” claims Lian.

Real property developer Fragrance Team has obtained 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), including the land betterment charge.

Katong Plaza is a freehold commercial and residential mixed-use project located at 1 Brooke Roadway. It has 132 strata retail units and 14 non commercial flats. Owners of the retail units will be receiving proceeds ranging from $502,000 to over $6 million, whilst home proprietors will be obtaining in between $2 million and $5.1 million, mentions Terence Lian, Huttons Asia’s head of financial investment sales that brokered the arrangement.

Marina View Residences condominium

The other real estate, based at Waterloo Street, are going to be a brand-new 502-room hotel 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 acquired in November 2018 for $131.1 million. The two 999-year leasehold locations were joined together, and URA approval was obtained for redevelopment into a 500-room hotel.

Last month, Fragrance Group and Global Premium Hotels signed an additional agreement with Accor to open up 2 new-build real estates with three brand-new hotels by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Street, which will be the largest Mövenpick lodging in the Asia Pacific region. It will additionally house Mövenpick Living Singapore, a 37-key lodging intended at visitors looking for prolonged stays.


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