Fragrance Group will redevelop both Tower 15 & Waterloo apartments into Hotel
The redevelopment of Waterloo Apartments became much clearer when Fragrance Group of James Koh Wee Meng bagged its collective sale worth S$131.1 million.
The 999-year leasehold building will be turned into a hotel after the sale, which paid out S$2,172 psf ppr.
James Koh’s company announced its plans of developing hotels along the Tanjong Pagar and Waterloo St. areas.
The Waterloo Apartments is undergoing rezoning process for complete hotel usage.
Fragrance also applied for the change to the Urban Redevelopment Authority (URA) for the alteration of the 15 Hoe Chiang Road commercial property.
The current features of the freehold 29-storey commercial property include a multi-level car park along with a three-storey hotel block.
Fragrance released its third quarter results statement, revealing that the company obtained the advice from the URA, stating that the Hoe Chiang Road rezoning is allowed but with various conditions.
This would include rezoning fee payment and submitting its full redevelopment proposal.
“The group confirmed payment of the rezoning fee as well as noted the processing of the amendment of the master plan as proposed.
The advice from the URA and planning submission came about in October 2018. Fragrance is currently working on its compliance with the other technical requirements.”
The fair value of the property is guaranteed to be uplifted with the change of use, which is approximately S$210 million, Fragrance stated.
Cushman & Wakefield took charge of the brokerage of the Waterloo Apartments collective sale.
They made an announcement in September along with its collective sale launch, stating that the acquisition of the outline property permission (OPP) is to change the zoning of the 999-yr leasehold property, transitioning from residential with 1st-storey commercial to hotel use.
The total maximum GFA of the property is 60,348 square feet and a plot ratio of 4.2 from its existing 2.8 ratio.
The enbloc site has high development baseline, which means that there are no payable development charges.
The land area of the property is 14,369 sq ft, located in the area of Bras Basah and Bugis.
Waterloo presently includes 30 apartments with the owners receiving about S$4.37 million gross sales proceeds for each unit.
Cushman & Wakefield capital markets director, Christina Sim, stated that the group decided the collective sale method, resulting in the sale of the property as commercial rather than a residential development site.
The option to submit an OPP and waiting for the approval for a hotel proposal was an aftermath of the July 6 cooling measures especially in the current residential en bloc market.
The sale must still adhere to the approval of the Strata Titles Board.
The strategic location of the Waterloo Apartments includes its close proximity to the Bencoolen MRT Station located on the Downtown Line as well as the Circle Line-based Bras Basah MRT.
It takes one train ride to the Dhoby Ghaut Interchange, with a route that serves, Circle Lines, North-East, and North-South.
Ms. Sim reiterated that the successful development is a chance to take advantage of the rich heritage of the city with the construction of an exclusive boutique hotel in the Civic District.