Fragrance Group Buys Katong Plaza 180 Mil Potential Redevelopment New Hotel
Fragrance Group has just acquired Katong Plaza in Marine Parade for a whopping $180 million, translating to a land rate of $1,809 psf per plot ratio (psf ppr). This includes the land betterment charge. Situated at 1 Brooke Road, Katong Plaza is a freehold mixed-use development with 132 strata retail units and 14 residential apartments.
According to Terence Lian, head of investment sales at Huttons Asia who brokered the deal, the proceeds for owners of the retail units will range from $502,000 to over $6 million, while residential owners will receive between $2 million and $5.1 million. The existing development spans a total land area of 34,044 sq ft with a gross plot ratio of 3.0, giving it a maximum gross floor area of 102,132 sq ft.
Katong Plaza is now zoned for both commercial and residential use, but has obtained approval from URA to be developed into a hotel. Lian believes that Fragrance Group may redevelop the site into a hotel under one of Accor’s brands. Located in prime District 15 and just 120m away from Marine Parade MRT Station and Parkway Parade shopping mall, Katong Plaza has the potential to yield between 300 and 340 hotel rooms. It is also surrounded by other hotels like Holiday Inn Express, Village Hotel Katong and Grand Mercure Roxy Singapore.
Lian says that this sale will boost confidence in the collective sale market, as developers continue to seek attractive land parcels. Fragrance Group, as well as its hospitality arm Global Premium Hotels, are both controlled by billionaire property developer and hotelier, James Koh, who is the chairman of both firms. Global Premium Hotels boasts a portfolio of brands, including Fragrance and Parc Sovereign. Last year, Fragrance and international hotel group Accor joined forces to open 13 new ibis Budget hotels, which were previously Fragrance-branded, and introduce the ibis Styles and Mercure brands to Singapore.
Adjacent to Jem is Westgate, a shopping destination that perfectly complements the overall experience with its selection of high-end retail stores and delectable dining choices. Its standout features include a charming rooftop garden and a delightful play area for children, making it an ideal shopping spot for families and individuals alike. And with Elta Condo just a short distance away, residents can enjoy top-notch retail experiences at both Westgate and Elta without having to venture too far from their homes.
In July, Fragrance Group and Global Premium Hotels also signed an agreement with Accor to launch three new hotels at two new-build properties. These include the 808-key Mövenpick Singapore on Hoe Chiang Road, which will be the biggest Mövenpick hotel in the Asia Pacific region. It will also house Mövenpick Living Singapore, a 37-key accommodation targeted at travellers seeking long-term stays.
The other property, located at Waterloo Street, is a new 502-room hotel under Accor’s Handwritten Collection brand. It is a redevelopment of the former Min Yuan Apartments which Fragrance Group acquired en bloc for $141 million in September 2019, as well as the former Waterloo Apartments, which was acquired in November 2018 for $131.1 million. The two 999-year leasehold sites have been amalgamated and obtained URA approval to be redeveloped into a 500-room hotel.