Katong Plaza En Bloc Sold To Fragrance Group for S$180 million
Katong Plaza, a well-known freehold mixed-use development located in District 15, has been successfully sold en bloc to Fragrance Group for S$180 million.
This significant sale translates to a land rate of S$1,809 per square foot per plot ratio (psf ppr), and the deal was brokered by Huttons Asia’s head of investment sales, Terence Lian.
While the identity of the buyer wasn’t initially confirmed, market sources have since indicated that Fragrance Group, helmed by James Koh, secured the property.
Katong Plaza, which houses 132 retail units and 14 residential apartments, offers its retail unit owners proceeds ranging from S$502,000 to S$6 million, while residential owners will receive between S$2 million and S$5.1 million.
With its strategic location in the vibrant Katong area, the site is an attractive acquisition for developers looking to capitalize on the area’s growth potential.
Katong Plaza’s Conversion to Hotel Use Sparks Optimism in Singapore’s Collective Sale Market
The prime property, which spans 34,044 square feet with a gross plot ratio of 3, is currently zoned for both commercial and residential use.
However, it has received outline permission from the Urban Redevelopment Authority (URA) to be converted for hotel use.
The proposed hotel redevelopment could potentially yield 300 to 340 rooms, depending on the sizes of the units.
This en bloc sale marks a confidence boost for the collective sale market, as developers remain keen on acquiring prime land parcels in sought-after locations.
Terence Lian expressed optimism that this sale could stimulate further interest in collective sales across Singapore, particularly in key districts like Katong.
Fragrance Group’s Acquisition of Katong Plaza Sets Stage for Dynamic Redevelopment in Singapore’s Iconic Katong District
Fragrance Group’s acquisition of Katong Plaza adds to its extensive portfolio of properties across Singapore.
The company, led by James Koh, has been active in the real estate market, with notable purchases of freehold industrial buildings in recent years.
Their latest acquisition at Katong Plaza underscores their continued interest in strategic redevelopment projects that cater to Singapore’s evolving urban landscape.
This successful sale follows Katong Plaza’s earlier market listing in May 2024, when it was initially priced at S$188 million, inclusive of a land betterment charge of about S$6 million.
The reduction in the final sale price to S$180 million likely contributed to the deal’s completion.
With Katong Plaza’s location in one of Singapore’s most dynamic and culturally rich neighborhoods, its redevelopment is expected to breathe new life into the area, attracting both local and international visitors once the proposed hotel project is completed.
The collective sale market in Singapore has seen renewed interest, and Katong Plaza’s successful sale could serve as a catalyst for other en bloc opportunities.
As the Katong district continues to evolve, Fragrance Group’s acquisition of Katong Plaza positions them well to tap into the increasing demand for hospitality and mixed-use developments in this iconic area.