Source: https://www.edgeprop.sg/property-news/freehold-mixed-use-roxy-square-relaunch-collective-sale
Freehold mixed-use development Roxy Square in Katong will be relaunched for collective sale, according to a press release by marketing agent JLL. The development consists of 296 shops, 26 apartments, and the 576-room Grand Mercure Roxy Hotel. It was previously launched for tender last July at a minimum price of $1.25 billion, but the tender closed on Sept 26 without any offers.
JLL has announced that the owners of Roxy Square 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 reduction will require at least 80% of the owners’ support to take effect, and it has already received backing from over 70% of the owners.
Under the new 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. Factoring in an additional 10% bonus gross floor area (GFA) for the residential component and the LBC, the land rate will be $1,804 psf ppr, says JLL.
Tan Hong Boon, JLL Singapore’s executive director of capital markets, believes that the private residential market in Katong has strong underlying support, as shown by recent launches like Meyer Blue and Emerald of Katong. He also mentions that the development’s location next to Marine Parade MRT Station (Thomson-East Coast Line) with a direct underground connection, its freehold tenure, and its proximity to amenities further enhance its appeal.
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. However, based on recent planning advice from URA, the entire Roxy Square site can be rezoned for commercial and residential use, allowing for the redevelopment of a high-rise mixed-use development with a height of up to 75m.
Redeveloping 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, says JLL. The development also offers easy access to 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 enhance the site’s appeal, especially given the area’s consistent demand for quality residences. The sale 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.