The well-known freehold mixed-use development, Roxy Square, located in the popular Katong area, is set to be relaunched for collective sale, as announced by marketing agent JLL.
The development, which includes 296 shops, 26 apartments, and the 576-room Grand Mercure Roxy Hotel, was initially launched for tender in July last year with a minimum price of $1.25 billion. However, the tender closed on Sept 26 without any successful bids.
In light of this, the owners of the development are currently in the process of signing a supplemental agreement to lower the collective sale price by 10.8% to $1.115 billion. This proposed lower price would require the support of at least 80% of the owners to take effect, with over 70% of owners already on board.
According to JLL, under the new price, the development is expected to have a unit land rate of $1,852 per square foot per plot ratio (psf ppr), which takes into account a Land Betterment Charge (LBC) at the gross plot ratio of about 3.86. If an additional 10% bonus gross floor area for the residential component and the LBC are factored in, the land rate will be $1,804 psf ppr.
Tan Hong Boon, JLL Singapore’s executive director of capital markets, believes that the private residential market in Katong has strong underlying support, with recent launches like Meyer Blue and Emerald of Katong achieving impressive sales. This has boosted the confidence of developers in the potential of Roxy Square.
Roxy Square enjoys a prime location next to Marine Parade MRT Station (Thomson-East Coast Line), with a direct underground connection. The development also boasts a freehold tenure, a well-loved heritage locale, and excellent connectivity to amenities, all of which contribute to its appeal.
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Completed in 1996, Roxy Square has a gross floor area (GFA) of 668,000 sq ft. Under 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 portion of the development that fronts Marine Parade Road is zoned for hotel use.
JLL has received planning advice from the Urban Redevelopment Authority (URA), which states that the entire Roxy Square site can be rezoned for commercial and residential use, allowing for a high-rise mixed-use development with a height of up to 75m.
If the site is redeveloped, it could potentially yield 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, according to JLL.
Roxy Square also offers easy access to major roads such as East Coast Parkway (ECP) and Nicoll Highway, and is part of the Round-Island Route and Park Connector Network.
Tan adds that the proposed reduction in reserve price, if supported by the majority owners, will further enhance the site’s appeal, especially considering the consistent demand for quality residences in the area. The sale of Roxy Square aims to shape a key part of Singapore’s East Coast for the future.
The tender for Roxy Square will close on Feb 18 at 3pm.