SINGAPORE (THE BUSINESS TIMES) - Property and hospitality group Roxy-Pacific Holdings' wholly-owned subsidiary RL East will fork out $93 million to acquire a freehold 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 land area of about 3,450 square metres (sq m) or 37,131 square feet (sq ft).
This will be the largest private residential transaction in the year to date, said Shaun Poh, Cushman & Wakefield's (C&W) executive director of capital markets.
At the moment, there are 15 adjoining two-storey terrace houses on the site.
Written permission has been obtained for the proposed construction of a part-five, part-eight storey residential development, said C&W, which brokered the sale. The side fronting Guillemard Road has a five-storey limit set by the Urban Redevelopment Authority, while the side fronting Jalan Molek has an eight-storey limit.
The proposed project will have 137 units and a maximum gross floor area of around 10,625 sq m or 114,364 sq ft, including a 10 per cent bonus balcony area, according to C&W.
In a bourse filing on Thursday, Roxy-Pacific said a plot ratio of 2.8 is allowed for a residential development on the site.
RL East has signed an agreement for the deal, although Roxy-Pacific did not disclose the seller's identity.
The freehold site will be acquired via the purchase of the 9,999-year leasehold estate interest in the 30 strata lots on the site, Roxy-Pacific added.
It will finance the acquisition with internal funds and bank borrowings.
In 2018, The Business Times reported that the site was put up for sale by an unnamed owner at an indicative price of $99 million.
Just a few minutes' walk from the site is another upcoming freehold condominium, Arena Residences, by Roxy-Pacific. The project at 20 Guillemard Crescent is expected to be completed in August 2022.
Also in the vicinity is Macly Group's recently launched 50-unit freehold condominium NoMa, launched in August, along Guillemard Road.
C&W's Mr Poh on Thursday said the latest sale signals the return of property developers' confidence.
He believes that over the next few quarters, more developers will enter the market to replenish their residential land banks, given the healthy take-up of recent project sales since the easing of movement restrictions in Singapore and other parts of Asia.
Shares of mainboard-listed Roxy-Pacific rose three cents or 0.6 per cent to trade at 38 cents as at 2.13pm on Thursday.