Fragrance Group Buys Katong Plaza 180 Mil Potential Redevelopment New Hotel
Fragrance Group has made a significant purchase in Singapore’s Marine Parade, acquiring Katong Plaza for $180 million. The sale price translates to a land rate of $1,809 psf per plot ratio (psf ppr), inclusive of the land betterment charge.
Located at 1 Brooke Road, Katong Plaza is a mixed-use development with both commercial and residential units, totaling 132 strata retail units and 14 residential apartments. Owners of the retail units can expect to receive proceeds ranging from $502,000 to over $6 million, while residential owners will receive between $2 million and $5.1 million. Terence Lian, Huttons Asia’s head of investment sales, who facilitated the deal, notes that this sale will greatly benefit those involved.
The existing development occupies a land area of 34,044 sq ft and has a gross plot ratio of 3.0, giving it a maximum gross floor area of 102,132 sq ft. While currently zoned for commercial and residential use, the property has received URA approval for hotel use. This has spurred speculation that Fragrance Group may redevelop the site into a hotel under one of the Accor brands.
Katong Plaza boasts a prime location in District 15, just 120m from the Marine Parade MRT Station and the Parkway Parade shopping mall. It is also in close proximity to other hotels such as the Grand Mercure Roxy Singapore, Holiday Inn Express Singapore Katong, and Village Hotel Katong. Lian believes this sale will boost confidence in the collective sale market and attract other developers to similarly attractive land parcels.
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The location of the development is perfect for those who prefer to drive instead of relying on public transportation. Situated near major expressways, residents will have easy access to various parts of Singapore. The Pan-Island Expressway (PIE) provides a direct route to the central area, while the Tampines Expressway (TPE) offers a smooth journey to northeastern regions such as Punggol and Seletar. Additionally, the Kallang-Paya Lebar Expressway (KPE) serves as a convenient alternative for daily commutes, connecting northeastern suburbs to the city center. With its ideal placement along Tampines Avenue 11, Parktown Residence allows for direct and convenient access to neighboring amenities, including Tampines Mall, Century Square, and Our Tampines Hub. Be sure to visit the Parktown Residence Showflat for a firsthand look at this strategic location.
The buyer, Fragrance Group, and its hospitality arm, Global Premium Hotels, are controlled by billionaire property developer and hotelier James Koh, who serves as chairman for both firms. Global Premium Hotels boasts a portfolio of brands, including homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and international hotel group Accor signed an agreement to launch 13 new ibis Budget hotels, previously branded as Fragrance, and bring in the ibis Styles and Mercure brands.
Recently, Fragrance Group and Global Premium Hotels signed another agreement with Accor to open two new-build properties, housing three new hotels, by 2027. The first of these will be Mövenpick Singapore on Hoe Chiang Road, an 808-key hotel, which will become the largest Mövenpick hotel in the Asia Pacific region. It will also provide accommodations for extended stays, with 37 rooms set aside under the name of Mövenpick Living Singapore.
The second property, located at Waterloo Street, will see the development of a 502-room hotel under the Handwritten Collection brand of Accor. This project is a redevelopment of the former Min Yuan Apartments, a site acquired by Fragrance Group en bloc in September 2019 for $141 million, and Waterloo Apartments, which Fragrance Group acquired in November 2018 for $131.1 million. These two 999-year leasehold sites were combined for redevelopment into a 500-room hotel.