Roxy-Pacific set to launch two condos later in year

Property group Roxy-Pacific Holdings will likely launch two freehold condominiums later this year. It told a results briefing yesterday that a development in Sea Avenue near Marine Parade and one in Jalan Eunos could be ready to go by the third or fourth quarter.

Executive chairman and chief executive Teo Hong Lim noted that the site at 26 Sea Avenue "has its attraction; (but) we don't foresee many competitors".

"Next to us is Marine Blue; their last few transactions were about $1,800 psf... so we could be in the $1,600 to $1,700 psf kind of pricing," he said. Roxy-Pacific acquired the 19,474 sq ft site, which can yield 25 residential units, for $21.5 million in September.

Pricing at the project earmarked for 178 and 180A Jalan Eunos would be "around $1,400 psf", as the land cost was cheaper, Mr Teo noted. The $14.2 million site has a land area of 17,237 sq ft that can accommodate 32 units.

Roxy-Pacific said it intends to remain focused on developing freehold sites. "The market probably could not go worse. There could be a bit of strengthening or at least stability, so it may be time to go back to buy some sites," Mr Teo noted.

He added that the impact will be minimal if the clawback provisions in the additional buyer's stamp duty (ABSD) rules are applied to the firm's unsold units.

Jade Residences, its first project to be subject to the ABSD rule, is already fully sold, while the firm has another 15 months to sell the five remaining units at Whitehaven in Pasir Panjang Road.

The ABSD rules require developers to build and sell all new units within five years from the date contract to buy the site, or pay a 10 per cent levy on the site's purchase price. This was later raised to 15 per cent for sites acquired from Jan 12, 2013.

Roxy-Pacific also announced a 73 per cent drop in fourth-quarter net profit to $12.34 million, due to the absence of profit recognition from the sale of strata retail floors at 8 Russell Street in Hong Kong.

Turnover for the three months to Dec 31 came in at $81.39 million, up 19 per cent from a year earlier. This was attributed to higher revenue from the property development segment, which was partly offset by a decrease in sales from hotel ownership and property investment segments.

Net profit for the full year fell 12 per cent to $85.1 million on revenue of $460.9 million. The firm proposed a final dividend of 1.297 cents, unchanged from a year ago.

Earnings per share for the fourth quarter was 1.03 cents, down from 3.90 cents in the previous year, while net asset value per share came in at 38.34 cents as at Dec 31, higher than 33.54 cents at the end of 2014.

The counter ended unchanged at 49 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on February 24, 2016, with the headline 'Roxy-Pacific set to launch two condos later in year'. Print Edition | Subscribe