Fragrance Group Buys Katong Plaza 180 Mil Potential Redevelopment New Hotel
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Singapore-based real estate developer Fragrance Group has just made an impressive $180 million acquisition of Katong Plaza in the upscale district of Marine Parade. The sale price amounts to a lucrative land rate of $1,809 per square foot per plot ratio (psf ppr), taking into consideration the land’s betterment charge.
Katong Plaza, situated at 1 Brooke Road, is a freehold mixed-use development that comprises 132 strata retail units and 14 residential apartments. As part of the deal, the owners of the retail units will receive proceeds ranging from $502,000 to a whopping $6 million, while the residential owners can expect between $2 million and $5.1 million. The successful transaction was brokered by Terence Lian, Huttons Asia’s head of investment sales.
Currently spanning a total land area of 34,044 square feet and boasting a gross plot ratio of 3.0, Katong Plaza has a maximum gross floor area of 102,132 square feet. Although the existing development is zoned for mixed commercial and residential use, it has obtained URA’s approval for a hotel conversion. According to Lian, the new hotel can potentially accommodate 300 to 340 rooms.
Located in the prime District 15 in the eastern region of Singapore, Katong Plaza is a mere 120 meters away from the Marine Parade MRT Station on the upcoming Thomson-East Coast Line, as well as the popular Parkway Parade shopping mall. It is also situated next to Roxy Square and the Grand Mercure Roxy Singapore, with other nearby hotels such as the Holiday Inn Express Singapore Katong and Village Hotel Katong.
Lian is optimistic that the successful sale of Katong Plaza will encourage other developers to continue pursuing attractive land parcels in the collective sale market. Fragrance Group, together with its hospitality arm Global Premium Hotels, is helmed by billionaire property developer and hotelier James Koh, who serves as the chairman of both firms. Global Premium Hotels has an impressive portfolio of prestigious brands, including the famous Fragrance and Parc Sovereign. In 2019, Fragrance and international hotel group Accor joined forces to launch 13 new ibis Budget hotels, formerly known as Fragrance-branded hotels. They also introduced the ibis Styles and Mercure brands to Singapore.
Last month, Fragrance Group and Global Premium Hotels signed yet another agreement with Accor, announcing the opening of two new-build properties and three new hotels by 2027. One of these properties is the massive 808-key Mövenpick Singapore, located at 81 Hoe Chiang Road, which will become the largest Mövenpick hotel in the entire Asia Pacific region. It will also feature the new Mövenpick Living Singapore, a 37-key accommodation aimed at travellers seeking extended stays. The other property, situated at Waterloo Street, will be a 502-room hotel belonging to Accor’s Handwritten Collection brand. It is a redevelopment of the former Min Yuan Apartments, which Fragrance Group bought for $141 million in September 2019. In addition, the firm also acquired the former Waterloo Apartments for $131.1 million in November 2018. The two 999-year leasehold sites were amalgamated, and URA approved the redevelopment into a 500-room hotel.