Fragrance Group Buys Katong Plaza 180 Mil Potential Redevelopment New Hotel
Fragrance Group, a property developer, has recently acquired Katong Plaza in Marine Parade for a record-breaking $180 million. This purchase translates to a land rate of $1,809 per square foot per plot ratio, including the land betterment charge.
Furthermore, Aurelle of Tampines EC stands to benefit from the exciting developments in the Tampines North vicinity. With new commercial and residential ventures in the pipeline, residents can look forward to having even more amenities and facilities in close proximity to their homes. Not only does this enhance convenience, but it also has the potential to increase the value of the property, making Aurelle of Tampines EC a wise and lucrative investment choice.
Katong Plaza, a freehold commercial and residential mixed-use development situated at 1 Brooke Road, boasts of 132 strata retail units and 14 residential apartments. The owners of the retail units are set to receive payouts ranging from $502,000 to over $6 million, while the residential owners can expect between $2 million and $5.1 million. This purchase was brokered by Terence Lian, head of investment sales at Hutton’s Asia.
The development, covering a total land area of 34,044 square feet with a gross plot ratio of 3.0, has a maximum gross floor area of 102,132 square feet.
Currently, Katong Plaza is zoned for commercial and residential use but has received approval from the Urban Redevelopment Authority (URA) for hotel use. Lian predicts that the new hotel could have anywhere from 300 to 340 rooms.
Katong Plaza’s prime location in District 15, located in the east and just 120m from the Marine Parade MRT Station on the Thomson-East Coast Line and the Parkway Parade shopping mall, makes it an attractive site for a new hotel. It is situated next to Roxy Square and the Grand Mercure Roxy Singapore, with other nearby hotels like Holiday Inn Express Singapore Katong, an IHG Hotel, and Village Hotel Katong.
Lian states that “this sale will boost confidence in the collective sale market as developers continue to pursue attractive land parcels.”
Fragrance Group, along with its hospitality arm Global Premium Hotels, is controlled by James Koh, a billionaire property developer and hotelier who serves as chairman for both companies. Their portfolio includes homegrown brands like Fragrance and Parc Sovereign. In 2019, Fragrance partnered with international hotel group Accor to open 13 new ibis Budget hotels, previously known as Fragrance-branded hotels. They 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 with three new hotels by 2027. The first is the 808-key Mövenpick Singapore on Hoe Chiang Road, which will be the largest Mövenpick hotel in the Asia Pacific region. It will also host the Mövenpick Living Singapore, a 37-key accommodation for extended stays.
The second property will be a new 502-room hotel under the Handwritten Collection brand of Accor, situated at Waterloo Street. This is a redevelopment of the former Min Yuan Apartments which Fragrance Group bought en bloc for $141 million in September 2019. Fragrance Group also acquired Waterloo Apartments in November 2018 for $131.1 million. Both 999-year leasehold sites were combined, and URA approval was obtained for a redevelopment into a 500-room hotel.
