Fragrance Group Buys Katong Plaza 180 Mil Potential Redevelopment New Hotel
Property developer Fragrance Group has recently acquired Katong Plaza in Marine Parade for $180 million. The final sale price translates to a land rate of $1,809 per square foot per plot ratio, which also includes the land betterment charge.
Katong Plaza is a mixed-use development with a combination of commercial and residential units, located at 1 Brooke Road. The property boasts 132 strata retail units and 14 residential apartments. The retail unit owners will receive proceeds ranging from $502,000 to over $6 million, while the residential owners will receive between $2 million and $5.1 million. Terence Lian, Huttons Asia’s head of investment sales who managed the deal, notes that the existing development covers an area of 34,044 square feet and has a gross plot ratio of 3.0, with a maximum gross floor area of 102,132 square feet.
The current zoning allows for both commercial and residential use, but Fragrance Group has received approval from the Urban Redevelopment Authority (URA) to convert the property for hotel use. According to Lian, the new hotel could potentially have 300 to 340 rooms. The prime location of Katong Plaza, situated in District 15 in the east, and its close proximity to the Marine Parade MRT Station on the Thomson-East Coast Line and the Parkway Parade shopping mall make it an attractive site for redevelopment.
Katong Plaza is situated next to Roxy Square and Grand Mercure Roxy Singapore. Other hotels in the area include Holiday Inn Express Singapore Katong, an IHG Hotel, and Village Hotel Katong. Lian believes that this sale will boost confidence in the collective sale market, as developers continue to seek out appealing land parcels. Fragrance Group and its hospitality arm, Global Premium Hotels, are owned by billionaire property developer and hotelier James Koh, who serves as chairman for both companies.
Global Premium Hotels also comprises various brands such as Fragrance and Parc Sovereign. In 2019, Fragrance Group 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. Last month, Fragrance Group and Global Premium Hotels signed another deal with Accor to open two new-build properties that will house three new hotels by 2027. One of the projects is the 808-key Mövenpick Singapore, located on Hoe Chiang Road, which is expected to be the biggest Mövenpick hotel in the Asia Pacific region. The hotel will also feature Mövenpick Living Singapore, a 37-key accommodation aimed at long-stay travelers.
In summary, it is clear that Norwood Grand is a prime example of contemporary living, boasting unmatched convenience and accessibility. Its location offers swift and effortless transportation options, whether by public transit or personal vehicle, allowing residents to easily reach any part of Singapore. With its close proximity to major MRT stations, expressways, and key roads, as well as ongoing infrastructural developments, Norwood Grand is not just a place to call home, but also a gateway to a superior, well-connected lifestyle in the bustling northern region of Singapore. For those interested in experiencing the luxurious Norwood Grand firsthand, be sure to visit the Norwood Grand Showflat for a glimpse into this exceptional development.
The other property, situated on Waterloo Street, will be a 502-room hotel under the Handwritten Collection brand of Accor. This development replaces the old Min Yuan Apartments, which Fragrance Group acquired for $141 million in September 2019, and the former Waterloo Apartments, which they bought in November 2018 for $131.1 million. The two 999-year leasehold plots were merged, and URA endorsement was obtained for the redevelopment of a 500-room hotel.