The iconic Roxy Square, a freehold mixed-use development located in the vibrant Katong neighbourhood, is set to be relaunched for collective sale. According to a press release by marketing agent JLL, the development will offer a unique opportunity for developers to acquire a prime site with a range of opportunities.
The development, which comprises 296 shops, 26 apartments, and the 576-room Grand Mercure Roxy Hotel, was previously launched for tender in July 2020 at a minimum price of $1.25 billion. However, the tender closed on Sept 26 without a successful bid.
In light of the current market conditions, the owners of the development have decided to lower the collective sale price by 10.8% to $1.115 billion. This proposed lower price would require at least 80% of the owners’ support to take effect. Currently, over 70% of owners have already expressed their approval.
Under the new price, the development is expected to have a unit land rate of $1,852 psf per plot ratio (ppr). This includes a Land Betterment Charge (LBC) at the gross plot ratio of about 3.86. With an additional 10% bonus gross floor area (GFA) for the residential component and the LBC factored in, the land rate will be $1,804 psf ppr, according to JLL.
Tan Hong Boon, executive director of capital markets at JLL Singapore, notes that the private residential market in Katong has strong underlying support, with recent launches such as Meyer Blue and Emerald of Katong recording impressive sales. This has boosted developers’ confidence in Roxy Square’s potential as a prime development site.
One of the main factors contributing to the development’s appeal is its prime location next to the upcoming 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, says Tan.
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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.
Based on recent planning advice from URA, the entire Roxy Square 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.
A successful redevelopment of the site 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, states 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.
Tan adds that the proposed reduction in reserve price, if supported by the majority of owners, would enhance the site’s appeal, especially considering the consistent demand for quality residences in the area. This sale will aim 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.