The freehold mixed-use development, Roxy Square in Katong, will be going through a collective sale again, as announced by JLL, the marketing agent for the property. The development, comprising of 296 shops, 26 apartments and the Grand Mercure Roxy Hotel with 576 rooms, was previously launched for tender in July last year at a minimum price of $1.25 billion. However, the tender closed without any bids in September of the same year.
In the latest announcement, JLL has stated that the owners of the development are in the process of signing a supplemental agreement to reduce the collective sale price by 10.8%, bringing it down to $1.115 billion. This proposed price reduction would require at least 80% of the owners’ support to take effect, and currently, over 70% have already shown their approval.
Under this new price, the development is expected to have a unit land rate of $1,852 per square foot per plot ratio (ppr), which includes a Land Betterment Charge (LBC) at a gross plot ratio of approximately 3.86. If an additional 10% bonus gross floor area (GFA) for the residential component and the LBC are taken into account, the land rate will be $1,804 psf ppr, as mentioned by JLL.
According to Tan Hong Boon, JLL Singapore’s executive director of capital markets, the private residential market in Katong has strong support, citing the impressive sales of recent launches like Meyer Blue and Emerald of Katong, which have boosted confidence in Roxy Square’s potential.
Located between Holiday Inn Express Singapore Katong and Katong Plaza, Roxy Square is set in a prime location next to the upcoming Marine Parade MRT Station (Thomson-East Coast Line), which will have a direct underground connection. The property also boasts a freehold tenure, a heritage locale that is well-loved by many, and excellent connectivity to various amenities, making it an even more attractive proposition.
Completed in 1996, Roxy Square has a GFA of 668,000 sq ft. According to the 2019 Master Plan, the development is partially zoned for commercial and residential use, with a gross plot ratio of 3.0 along East Coast Road. The front portion of the development, which faces Marine Parade Road, is zoned for hotel use.
JLL has said that based on recent planning advice from the Urban Redevelopment Authority (URA), the entire Roxy Square site can be rezoned for commercial and residential use, and redeveloped into a high-rise mixed-use development with a height of up to 75m.
With the redevelopment of the site, it is believed that it has the potential to yield over 350 residential units, about 80,000 sq ft of retail and F&B space, and an additional 172,000 sq ft for offices, hotels, or other commercial uses.
Access to the development is excellent, with the East Coast Parkway (ECP) and Nicoll Highway close by. Additionally, it is also part of the Round-Island Route and Park Connector Network.
Tan stated that should the majority owners support the proposed reduction in reserve price, it would further enhance the site’s appeal, particularly given the consistent demand for quality residences in the area. He added that this sale would play a key role in shaping the future of Singapore’s East Coast area.
When it comes to real estate investing, location is a crucial factor to consider, and this is particularly important in Singapore. Condos that are located in central areas or near important amenities, such as schools, shopping malls, and public transportation hubs, tend to have a higher potential for appreciation in value. Some prime locations in Singapore known for their consistent growth in property values include Orchard Road, Marina Bay, and the Central Business District (CBD). Additionally, condos in these areas also benefit from their proximity to reputable schools and educational institutions, making them highly sought after by families and further enhancing their investment potential. With these desirable Condo locations, investing in real estate in Singapore can be a lucrative opportunity for investors.
The tender for Roxy Square is set to close on 18th February 2021 at 3pm.