ROXY-PACIFIC Holdings plans to redevelop a freehold plot in River Valley Road, which it bought for S$110 million, into an apartment block of at least 18 storeys and housing more than 100 units.
The price paid by the developer for the 28,798 sq ft site opposite the Yong An Park condo works out to about S$1,582 per square foot per plot ratio (psf ppr), inclusive of an estimated development charge of S$17.6 million.
Under the Urban Redevelopment Authority’s 2014 Master Plan, the site is zoned for residential use with a 2.8 plot ratio (ratio of maximum gross floor area to land area).
The transaction is an estate sale.
Galven Tan, director of capital markets at CBRE, which brokered the deal by private treaty, said: “The site is about 200 m from the proposed Great World City MRT station exit, which is to be located at the junction of River Valley Road and Leonie Hill Road.”
Roxy-Pacific executive chairman Teo Hong Lim told BT that the group was still reviewing the unit mix for the project, but added that it is likely to comprise predominantly two and three-bedders.
“We’ve not decided whether to have any one-bedders. We expect to launch the project in the second half of next year.
“We are taking the view that freehold prime district residential properties are relatively undervalued – in view of bullish land bids recently of around S$1,000 psf ppr for 99-year leasehold sites outside the city.”
Roxy is on the prowl for more sites for freehold residential projects in the prime districts, he added.
Last year, the group took the majority stake in a joint venture that acquired an old freehold apartment block at 120 Grange Road. The group plans to redevelop that property into an 18-storey apartment block with more than 50 units.
“Between the River Valley and Grange projects, we can try to reap economies of scale, for instance, by appointing the same contractor, as well as when it comes to buying things like kitchen equipment and sanitary ware,” said Mr Teo.
“We might also have the same marketing agents for both projects and get them to cross-sell the two developments.”
On the stock market, Roxy-Pacific ended half a Singapore cent higher at 50.5 cents on Monday. The company announced the acquisition after the market closed.