Waterloo Apartments has been sold through a collective sale for $131.1 million to a wholly owned subsidiary of Fragrance Group.
The subsidiary intends to redevelop the 999-year leasehold property, which has a land area of about 14,369 square feet, into a hotel.
The property is at 64 Waterloo Street in the Bras Basah-Bugis area.
Outline planning permission (OPP) has been obtained for a change in the property's zoning from the existing "residential with first-storey commercial" with a plot ratio of 2.8, to hotel use with a plot ratio of 4.2 or a total maximum gross floor area of 60,348 sq ft.
No development charges are payable due to the high development baseline for the site, said Cushman & Wakefield, which brokered the deal.
Waterloo Apartments currently comprises 30 apartments. Its owners will receive gross sales proceeds of about $4.37 million per unit.
Ms Christina Sim, director of capital markets at Cushman & Wakefield, said: "We decided to change the course of the collective sale and, instead of selling Waterloo Apartments as a residential development site, we opted to submit an OPP and wait for the hotel approval, given that the residential en bloc market was reeling from the blow of the July 6 cooling measures.
"We were also fortunate that the site is well located and within a zone which the Urban Redevelopment Authority would like to see enhanced into a kaleidoscope of delightful and memorable places."
The sale is subject to approval from the Strata Titles Boards.
Waterloo Apartments is a stone's throw from the Bencoolen MRT station on the Downtown Line and the Bras Basah MRT station on the Circle Line.
It is also a train stop to the Dhoby Ghaut interchange, which serves the North-East, North-South and Circle lines.
"This offering gives the successful developer an opportunity to capitalise on our city's rich heritage by building an exclusive boutique hotel befitting the Civic District," said Ms Sim.