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Thursday, November 19, 2020 – 2:32 pm
UPDATED Fri, Nov 20, 2020 – 8:40 am
OWNED and the wholly owned subsidiary of the Roxy-Pacific Holdings group, RL East, will spend S $ 93 million to acquire a wholly owned residential development site near the Aljunied and Mountbatten MRT stations.
Located at 217-223A Guillemard Road and 1-21A Jalan Molek, the property occupies a total area of approximately 3,450 square meters (m2) or 37,131 square feet (square feet).
This will be the largest private residential transaction of the year to date, said Shaun Poh, executive director of capital markets at Cushman & Wakefield (C&W).
At the moment, there are 15 adjoining two-story townhouses on the site.
Written permission was obtained for the proposed construction of a part five and part eight residential development with 137 units, said C&W, which negotiated the sale. The side facing Guillemard Road has a five-story boundary set by the Urban Redevelopment Authority, while the side facing Jalan Molek has an eight-story boundary.
The proposed project will have a maximum gross floor area of about 10,625 square meters or 114,364 square feet, including an additional 10 percent balcony area, according to C&W.
In a bag filing Thursday, Roxy-Pacific said a 2.8 parcel ratio is allowed for a residential development on the site.
RL East has signed an agreement for the deal. Cushman & Wakefield told The Business Times that the seller is SL Cheong. (see explanatory note)
The wholly owned site will be acquired through the purchase of 9,999-year leasehold property in the 30 strata lots at the site, Roxy-Pacific added.
It will finance the acquisition with internal funds and bank loans.
In 2018, The Business Times reported that the site was put up for sale at an indicative price of S $ 99 million.
Just a few minutes’ walk from the site is another upcoming freehold condo, Arena Residences, by Roxy-Pacific. The project at 20 Guillemard Crescent is expected to be completed in August 2022.
Also nearby is Macly Group’s recently launched 50-unit NoMa condo, launched in August, along Guillemard Road.
C & W’s Mr Poh said Thursday that the latest sale signals the return of confidence from real estate developers.
He believes that in the coming quarters, more developers will enter the market to replenish their residential land banks, given the good acceptance of recent project sales since the easing of movement restrictions in Singapore and other parts of Asia.
Shares of Roxy-Pacific, which is traded on the motherboard, rose 0.03 Singapore dollars or 0.6 percent to trade at 0.38 Singapore dollars as of 2.13 pm Thursday.
Disclaimer: This article has been updated with the identity of the seller, which was not previously revealed in the ad.
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