Published September 11, 2009

Fragrance unit buys Sembawang site

FRAGRANCE Group continues to buy land. It said yesterday that its fully owned subsidiary Fragrance Homes has bought a site at Kerong Lane, in the Sembawang area, for $7.5 million.

The price works out to $238 per square foot for the 31,464 sq ft plot. The 99-year leasehold site is for landed housing and can yield 15 three-storey terrace houses with attics.

'The acquisition is subject to the seller obtaining the necessary approval from the Urban Redevelopment Authority,' Fragrance said yesterday.

An industry observer said the site could be one sold by the URA in the past. It is in a location where URA has auctioned sub-divided landed-housing plots.

In April last year, the authority auctioned 11 plots at an average price of $223 psf. At that auction, Fragrance picked up four plots that can be developed into eight semi-detached houses and 40 terrace houses.

Market watchers say the group has bought more than $100 million of property in the past few months. Its purchases include the Premier Centre office block in the Beach Road area, development land at Telok Kurau, a site in Changi Road and a row of shophouses at Pasir Panjang.

Fragrance Group posted an 11.4 per cent year-on-year increase in net profit for the second quarter ended June 30 to $17.7 million. Turnover rose 33.1 per cent to $79.5 million.