Fragrance will now transform the site of the former Tower 15 at 15 Hoe Chiang Road in to a hotel project and serviced apartments.

According to the Urban Redevelopment Authority’s latest master plan, both sites have been zoned Business 1, which allows light industrial use. Both sites also share the same plot proportion, which is the ratio of maximum floor area to total land area, 2.5.

Koh also bought a property in 3 Kallang Pudding Road, which is worth nearly S$40m. The lowrise building with a total site area of 24,700 sq. ft. is located on the corner of Tannery Road and Kallang Pudding Road. Cheng Meng Furniture Group controlled by the Choo Family is selling this property. The seller occupies this building.

James Koh’s entities, including the founder and chairman of Fragrance Group James Koh purchased two industrial buildings that were freehold in Singapore. The total purchase price was S$101,000,000.

He pays S$61 million to purchase a five-storey building at 3 New Industrial Road located in Upper Paya Lebar/Bartley. The site, measuring 34,125 square feet, is mostly occupied by Kimly Construction. They will be leasing back the space for a brief period. In addition, there are other tenants. Kimly Construction is owned and operated by the Khoo family.

The Hill at One-North Showroom

Market watchers couldn’t determine if the two properties had gross floor areas that were untapped. The sites, however, could be redeveloped according to green and modern industrial standards. These facilities would have higher rental values and capital values.

The older industrial properties are also an excellent opportunity for buyers to upgrade the buildings into higher quality industrial buildings. This can be done for long-term rentals or for strata division and sale.

Koh, via various privately-held companies, has a large portfolio of hospitality, industrial, office and other assets primarily in Singapore. He privatised Fragrance Group listed on the Singapore Exchange by 2021 and Global Premium Hotels by 2017.

Fragrance sold Victory Centre – a seven storey light industrial ramp-up facility near Aljunied MRT – for S$90,000,000 to an entity connected to LaSalle Investment Management.

Koh is likely to continue leasing out his properties for the near to mid-term.

In spite of low rental returns, there is still a great deal of interest in older industrial freehold properties in Singapore. These assets are mainly sought after for their potential capital growth.

Fragrance built the property at the corner Sims Drive and Aljunied Road, a 67.944 sq ft 60-year leasehold parcel. The site was acquired for S$43.39m in a URA bid in 2012.