Singaporean Fragrance Group Pays AUD40m for a Hotel Development in Devonport, Tasmania

Main Photo: The new hotel in Tasmania for Fragrant – imagined

Date: March 2020

Location: Devonport, Tasmania, Australia

Name: TBA – opening late 2021

No. of Keys: 187

Seller: The new hotel is being built on the former Harris Scarfe store on Best Street.

Founded in 1849, Harris Scarfe operated 66 retail stores nationally in two formats including “Harris Scarfe” department stores and “Harris Scarfe Home” homewares and kitchenware stores.

In December 2019, Harris Scarfe entered into voluntary administration after 170 years in operation. As of January 2020, 21 of its 65 stores are set to close.

Buyer: Singapore’s Fragrance Group has acquired a hotel project in Tasmania for A$40m

The company, controlled by billionaire Koh Wee Meng is braving the global downturn to snap up an Aussie hotel project for A$40 million. Local construction group Fairbrother is building the hotel, after buying the land from the Devonport City Council for an undisclosed amount. The hotel does not yet have an operator. The 187 room Waterfront hotel will be completed by late 2021.

The Devonport-based Fairbrother construction firm is building the hotel, and appointing a hotel operator after buying the land from the Devonport City Council for an undisclosed amount.

Fragrance, FGL, is an interesting company with a presence across three continents, Asia, Australia and Europe. FGL was listed on the main board of the SGX-ST in February 2005 and has a current market capitalisation in excess of SG$1 billion.

THPT Comment: Brave move for these times. Core business activities of the Group include development of residential, commercial, hotel and industrial properties. 12 hotels in Singapore, 10 in the UK and now 4 in Australia.

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