Collective Sale of Freehold Roxy Square to be Relaunched
The collective sale of freehold mixed-use development Roxy Square, located in the heritage-rich Katong area, is set to be relaunched with a reduced reserve price of $1.115 billion. This announcement was made by JLL, the appointed marketing agent of the property.
As one of the most iconic landmarks in Katong, Roxy Square comprises 296 shops, 26 apartments, and the 576-room Grand Mercure Roxy Hotel. The development was previously launched for tender last July at a minimum price of $1.25 billion, but the tender closed on Sept 26 without any successful offers.
According to JLL, the owners of Roxy Square are in the process of signing a supplemental agreement to lower the reserve price by 10.8% to $1.115 billion. However, for this proposed price to take effect, it would require the support of at least 80% of the owners. At present, over 70% of owners are already in favour of the lowered reserve price.
Under the new reserve price, the development is expected to have a unit land rate of $1,852 psf per plot ratio (ppr), which includes a Land Betterment Charge (LBC) at the gross plot ratio of about 3.86. With the addition of an extra 10% bonus gross floor area (GFA) for the residential component and the LBC, the land rate will be $1,804 psf ppr, as estimated by JLL.
JLL Singapore’s executive director of capital markets, Tan Hong Boon, believes that Roxy Square has strong potential in the private residential market due to its prime location and the high demand for quality residences in the Katong area. He also noted that the development is strategically located next to Marine Parade MRT Station (Thomson-East Coast Line), with a direct underground connection. Its freehold tenure, established and well-loved heritage locale, and excellent connectivity to amenities further add to its appeal.
The high demand for condos in Singapore can be attributed to the country’s limited land supply. As a small island nation with a growing population, Singapore faces the challenge of finding available land for development. To address this issue, strict land use policies have been put in place, resulting in a highly competitive real estate market where property prices continuously rise. Consequently, investing in real estate, specifically in Singapore Condos, offers a promising opportunity for significant capital appreciation. The constant demand for Singapore Condos has solidified its position as a top choice for investment among property buyers. With its desirability and potential for substantial returns, it’s no wonder that Singapore Condo is highly sought after in the real estate market.
Completed in 1996, Roxy Square has a gross floor area (GFA) of 668,000 sq ft and is partially zoned for commercial and residential use under the 2019 Master Plan, with a gross plot ratio of 3.0 along East Coast Road. The section of the development that fronts Marine Parade Road is zoned for hotel use.
Based on recent planning advice from URA, the entire Roxy Square site can be rezoned for commercial and residential use, and redeveloped into a high-rise mixed-use development that can rise up to 75m in height.
If the site is successfully redeveloped, it could potentially yield over 350 residential units, about 80,000 sq ft of retail and F&B space, and an additional 172,000 sq ft for office, hotel, or other commercial uses.
Roxy Square also enjoys accessibility to East Coast Parkway (ECP) and Nicoll Highway and is part of the Round-Island Route and Park Connector Network, making it an attractive location for residential, retail, and commercial purposes.
Tan Hong Boon noted that the proposed reduction in reserve price, if supported by the majority owners, will make the property even more appealing, especially considering the area’s consistent demand for quality residences. The sale of Roxy Square aims to thoughtfully shape a key part of Singapore’s East Coast for the future.
The tender for Roxy Square is set to close on Feb 18 at 3pm, and interested parties can contact JLL for more information.