Freehold mixed-use development Roxy Square in Katong is set to be relaunched for collective sale at a discounted price. This comes after the development was initially launched for tender last July at a minimum price of $1.25 billion, but failed to attract any buyers before the tender closed on Sept 26.
Marketing agent JLL has announced that the owners of Roxy Square, which comprises 296 shops, 26 apartments, and the 576-room Grand Mercure Roxy Hotel, are in the process of signing a supplemental agreement to lower the collective sale price by 10.8% to $1.115 billion.
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If the owners’ support for the proposed lower price reaches at least 80%, 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 inclusion of an additional 10% bonus gross floor area (GFA) for the residential component and the LBC, the land rate will be $1,804 psf ppr, according to JLL.
Tan Hong Boon, JLL Singapore’s executive director of capital markets, believes that Roxy Square’s appeal is enhanced by its location next to Marine Parade MRT Station (Thomson-East Coast Line), with a direct underground connection. “The freehold tenure, established and well-loved heritage locale, and excellent connectivity to amenities further add to this appeal,” Tan adds.
Completed in 1996, the development has a gross floor area (GFA) of 668,000 sq ft. Partially zoned for commercial and residential use, with a gross plot ratio of 3.0 along East Coast Road under the 2019 Master Plan, the portion of Roxy Square that fronts Marine Parade Road is zoned for hotel use.
Based on recent planning advice from URA, the entire site can be rezoned for commercial and residential use, and be redeveloped into a high-rise mixed-use development with a height of up to 75m, potentially yielding over 350 residential units, approximately 80,000 sq ft of retail and F&B space, and an additional 172,000 sq ft for office, hotel, or other commercial uses, says JLL.
The development also offers accessibility to East Coast Parkway (ECP) and Nicoll Highway and forms part of the Round-Island Route and Park Connector Network.
“The proposed reduction in reserve price, if supported by the majority owners, enhances the site’s appeal, especially considering the area’s consistent demand for quality residences. This sale will aim to thoughtfully shape a key part of Singapore’s East Coast for the future,” says Tan.
The tender for Roxy Square is set to close on Feb 18 at 3pm.