JLL markets freehold mixed development Roxy Square for collective sale

SINGAPORE, July 24, 2024 – JLL (NYSE: JLL), as the sole marketing agent, has launched Roxy Square Shopping Centre / Grand Mercure Roxy Hotel (“Roxy Square”) for collective sale by tender. The freehold mixed-use development is up for sale at a minimum price of $1.25 billion.

Built in three phrases from the early 1980s to 2000, Roxy Square comprises of 296 shops, 26 apartments, and the Grand Mercure Roxy Hotel with 576 rooms. The collective sale site has triple road frontages along East Coast Road, Marine Parade Road, and Brooke Road. More than 80 per cent of the owners have consented to the collective sale at the minimum price. Dentons Rodyk & Davidson LLP are the appointed lawyers acting for consenting owners of the development.

Under the 2019 Master Plan by the Urban Redevelopment Authority (URA), the site is partially zoned as ‘Commercial & Residential’ with a gross plot ratio (GPR) of 3.0, along East Coast Road. It is also partially zoned as ‘Hotel’, fronting Marine Parade Road.

Based on a recent planning advice from the URA, the entire Roxy Square site may be rezoned into ‘Commercial & Residential’ and be redeveloped into a high-rise mixed development comprising of residential, commercial, and/or hotel components. In addition, the redevelopment can be built up to a height of 75 metres Singapore Height Datum. This will allow the developer to capitalise on the sea views towards the south and the unblocked views over the shophouses, low-rise mixed-use buildings, and landed residential estates towards the north.

The site has a gross floor area (GFA) of some 668,000 square feet (sq ft). Subject to approval from the URA, a developer could potentially configure the allowable GFA into a mixed-use development with over 350 residential units and close to approximately 80,000 sq ft of retail and F&B space. The remaining GFA of about 172,000 sq ft can be set aside for office, hotel, or other compatible commercial uses.

The minimum price of $1.25 billion reflects a unit land rate of approximately $2,094 psf per plot ratio (psf/pr) and is inclusive of a land betterment charge (LBC) at the base GPR of about 3.86. Factoring an additional 10% bonus GFA for the residential component with the LBC payable, the unit land rate will be around $2,034 psf/pr.

“We have observed an increasing popularity with home buyers in recent years of mixed residential and commercial developments. In the Katong area, there are currently no comparable mixed-used sites to Roxy Square available for redevelopment, not to mention a freehold one. Knowing the keen interest from many medium and large, local, and foreign developers, we anticipate significant interest for this very rare freehold opportunity,” says Tan Hong Boon, Executive Director, Capital Markets, JLL Singapore.

The site provides ease of accessibility through multiple pathways especially with recent transport developments in the area being completed. The entrance of the newly opened Marine Parade MRT Station, which is on the Thomson-East Coast Line (TEL), is directly in front of the site. There is also a provision for a knock-out-panel at the MRT Station which will allow the future development to have a direct connection to the station concourse level, linking it to the underground pedestrian network with a new array of shops.

With the MRT station at its doorstep, the site provides a straight route for commuters in the area to access destinations like the Singapore Sports Hub, the Central Business District (CBD) and Orchard Road. It will also have direct access to Changi Airport once the remaining stations on the line are completed. Supporting this is also the new double-bay bus stop which is well-served by numerous bus services linking the area to many amenities and schools in Singapore’s east.

With the link to the new MRT Station, it will provide for an underground pedestrian network to link pedestrians to Marine Parade Central, Parkway Parade, and via the underground linkway beneath the ECP, to the East Coast Park directly. As the site will have a depth of some 256 metres, the URA envisages the new development to incorporate a pedestrian mall and pedestrian friendly connection from Marine Parade Road and the MRT station to East Coast Road as well. This would provide users with seamless and convenient connectivity to all major nodes in the area.

“There are many success stories of developers achieving premium prices for such mixed-used projects, especially those which are typically transit-oriented with a MRT station and even a bus interchange integrated into the site. The overall accessibility of the area would greatly enhance the comfort and convenience of the public when moving between the Marine Parade and East Coast Road areas. This will allow for ease of access to the ever vibrant and heritage rich locale with the quaint cafés and F&B outlet-lined streets of East Coast Road and Joo Chiat Road just around the corner,” added Tan.

Katong, with its rich Peranakan heritage, has over the years evolved into a culturally diverse neighbourhood with established prime private residential enclaves that have been very popular with both the well-heeled locals and the expatriate communities.

Established shopping amenities, popular eateries, and hip cafes are readily accessible within the Katong precinct including along Joo Chiat Road, East Coast Road, and Tanjong Katong Road. Major shopping malls in the area including Parkway Parade, i12 Katong, and Katong V are all located near Roxy Square.

The area also plays host to many prominent schools, covering all ages from well-known pre-schools to primary, secondary, and even a tertiary school. Tao Nan School, CHIJ (Katong) Primary, Haig Girls’ School and Tanjong Katong Primary School are within the 1km radius of Roxy Square. Other schools in the area include Chung Cheng High School (Main), Tanjong Katong Girls’ School, Victoria School, and Victoria Junior College.

With the two major thoroughfares of East Coast-Mountbatten Roads and Marine Parade Road connecting to the East Coast Parkway (ECP) and Nicoll Highway, it takes only about 15 minutes to travel from Roxy Square to both the CBD and Changi Airport.

The Marine Parade area has always been a draw due to its proximity to East Coast Park. Avid outdoor enthusiasts will enjoy enhanced accessibility to nature spaces across the island via the Round-Island Route and Park Connector Network. This allows for cycling to work in the CBD or to enjoy the many lifestyle offerings in the vicinity such as Singapore Sports Hub and Gardens by the Bay.

The tender for Roxy Square closes on Thursday, 26 September 2024 at 3.00 p.m.