Fragrance Group acquires Min Yuan Apartments; plans to build hotel development

FRAGRANCE Group's wholly-owned subsidiary Fragrance Victory has acquired Min Yuan Apartments at 62 Waterloo Street for S$141 million.

The property, with a tenure of 999 years, has a land area of 1,359.1 square meters at a plot ratio of 4.2. Upon redevelopment, it may yield a potential gross floor area of 5,708.22 square meters, subject to payment of development charge of approximately S$19.55 million at the prevailing rate.

Fragrance Victory already owns the adjacent land plot located at 64 Waterloo Street. Subject to obtaining the necessary approvals, the group intends to redevelop the two properties together for a combined comprehensive hotel development, which will have a total land area of 2,694 square meters and a gross floor area of 11,315 square meters.

The costs of the above acquisition and development will be funded through internal funds and borrowings. This transaction is not expected to have any material impact on the earnings and net tangible assets of the company in FY2019.