Fragrance Group Buys Katong Plaza 180 Mil Potential Redevelopment New Hotel
Katong Plaza reaps $203 mil from collective sale
In a recent transaction, property developer Fragrance Group has purchased Katong Plaza in Marine Parade for a whopping $180 million. This translates to a land rate of $1,809 psf per plot ratio (psf ppr), which also includes the land betterment charge. The freehold development, located at 1 Brooke Road, comprises 132 strata retail units and 14 residential apartments. According to Terence Lian, Huttons Asia’s head of investment sales who facilitated the deal, owners of the retail units are expected to receive proceeds ranging from $502,000 to over $6 million, while residential owners are set to receive between $2 million and $5.1 million. The current development sits on a land area of 34,044 sq ft and has a gross plot ratio of 3.0, which allows for a maximum gross floor area of 102,132 sq ft.
Katong Plaza is currently zoned for commercial and residential use but has also obtained URA approval for hotel use. Lian predicts that the new hotel could have a potential yield of 300 to 340 rooms. The site is located in the prime District 15 in the east and is only 120m away from the Marine Parade MRT Station on the Thomson-East Coast Line, as well as the Parkway Parade shopping mall. It is situated next to Roxy Square and the Grand Mercure Roxy Singapore. Other nearby hotels include Holiday Inn Express Singapore Katong and Village Hotel Katong.
Lian states that this sale will likely boost confidence in the collective sale market as developers continue to pursue attractive land parcels. The Fragrance Group and its hospitality arm, Global Premium Hotels, are owned by billionaire property developer and hotelier James Koh, who acts as the chairman for both companies. Global Premium Hotels holds a diverse portfolio of brands, including the well-known Fragrance and Parc Sovereign. The group teamed up with international hotel group Accor in 2019 to open 13 new ibis Budget hotels, which were previously Fragrance-branded hotels, and also introduced the ibis Styles and Mercure brands.
Last month, Fragrance Group and Global Premium Hotels signed an agreement with Accor to open two new-build properties that will include three new hotels by 2027. The first is the 808-key Mövenpick Singapore on Hoe Chiang Road, which is set to be the largest Mövenpick hotel in the Asia Pacific region. It will also house Mövenpick Living Singapore, a 37-key accommodation aimed at travellers looking for extended stays. The second property, located at Waterloo Street, will be a brand new 502-room hotel under the Handwritten Collection brand of Accor. This will involves the redevelopment of the former Min Yuan Apartments, which Fragrance Group acquired en bloc for $141 million in September 2019, and the former Waterloo Apartments, which were purchased by the group in November 2018 for $131.1 million. The two 999-year leasehold sites were merged together, and URA approval was obtained for the construction of a 500-room hotel.
Located in Toa Payoh, The Orie boasts a prime location that offers residents both convenience and accessibility. With its strategic position, this development is well-connected to the rest of Singapore through an efficient public transport system and major roads. Whether it’s commuting to work in the Central Business District, exploring the cultural sites of the city, or simply enjoying local amenities, The Orie residents will find it easy to access all that Singapore has to offer. It’s not just a home, but also a gateway to the dynamic urban lifestyle of Singapore.