Katong Plaza put up for sale at S$188 million, with approval for hotel use

The building houses 132 retail units and 14 residential apartments

May 29, 2024

KATONG Plaza, a 41-year-old property in the east, is being put on the market via a collective sale, with an asking price of S$188 million.

This translates to a land rate of S$1,901 per square foot per plot ratio for the freehold site, including a land betterment charge of about S$6 million, according to marketing agent Huttons Asia.

The building houses 132 retail units and 14 residential apartments. Owners of the retail units stand to get proceeds ranging from S$390,000 to over S$5 million, while residential owners will be getting between S$2 million and S$5.3 million, said Terence Lian, the agency’s head for investment sales.

The site, currently zoned for commercial and residential use, has been granted outline permission from the Urban Redevelopment Authority (URA) to convert it for hotel use.

“We have deliberated on several options for the redevelopment of Katong Plaza, and found that commercial/residential development is not viable as the site is too narrow for it to function as a commercial development,” Lian told The Business Times.

He added: “With the rapid recovery of the tourism industry and high demand for hospitality, we strongly believe that the hotel use will suit 1 Brooke Road.”

The proposed hotel development can yield up to 300 to 340 rooms depending on the sizes, said Huttons.

Located in District 15, it has a land area of 34,044 square feet (sq ft) and a gross plot ratio of three, which gives a maximum gross floor area (GFA) of 102,132 sq ft.

The marketing of Katong Plaza comes amid a recent pick-up in activity in the commercial real estate market.

City Developments bought over Delfi Orchard for S$439 million in an en bloc sale. The deal, announced on Tuesday (May 28), reflected a land rate of S$3,346 psf ppr for the 20,264 sq ft retail/office site.

Owners of Far East Shopping Centre are now mulling an offer of about S$880 million after the building was put back on the market in May.

Owners at High Street Centre on One North Bridge Road are also making a fresh bid at a collective sale, with plans to lower their asking price to S$700 million. The commercial site offers the option of incorporating a “hotel” or “serviced apartment” component within the development.

Three other hotel assets are also on the market. Travelodge Harbourfront Singapore is being put on the market with a guide price of S$320 million or about S$950,000 per key for its 336 rooms.

Earlier this month, Sandpiper Hotel in Little India was put on the market for S$33 million or S$1.06 million per key. In April, private equity firm Lucrum Capital put a freehold hotel on Killiney Road up for sale at S$195 million or S$1.7 million per room.

The tender for Katong Plaza will close on Jul 25.