Roxy-Pacific associate acquires 999-year leasehold residential site for S$33.6m

MEQUITY Hills, a new associate of property developer Roxy-Pacific Holdings, has entered an agreement to acquire a 999-year leasehold residential site at 10A and 10B Institution Hill for S$33.6 million.

The site has an estimated total land area of 8,761 sq ft and has a plot ratio of 2.8 under the 2019 Master Plan for residential development, Roxy-Pacific said in a Thursday bourse filing after the market close.

Mequity Hills intends to amalgamate the site with another 999-year leasehold site at 11 Institution Hill, after it exercises the Option To Purchase issued on Feb 1, 2021 to acquire it.

The combined site will have an estimated total land area of 14,300 sq ft, with a total gross floor area of 40,040 sq ft for residential development.

Roxy-Pacific also disclosed in the Thursday filing that its unit RP Ventures has subscribed to 840,000 shares, representing a 42 per cent stake, in Mequity Hills for S$840,000. This makes Mequity Hills an associate of the mainboard-listed company.

The other shareholders of Mequity Hills are Macly Capital and LWH Holdings, with a 48 per cent and 10 per cent stake respectively.

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Roxy-Pacific will finance the purchase of Mequity Hills shares and the cost of the property acquisition with internal funds and bank borrowings.

In a separate press release on Thursday, Cushman and Wakefield said that it brokered the sale and was the exclusive agent handling the expression of interest. 

“With the surrounding neighbourhood of Orchard Road, Robertson Quay, Clarke Quay and River Valley precincts filled with a plethora of entertainment, retail and F&B outlets, Institution Hill is possibly one of the best locations to work, live and play,” the firm said.

 Christina Sim, director of capital markets at Cushman & Wakefield, said many developers are continuously looking for land bank to develop and sell. Interest in district 9, where the 10A and 10B Institution Hill is located, as well as residential plots on the fringe of the Central Business District are especially popular. This is due to the scarcity of supply of small to mid-sized plots. 

Recent transacted prices in the vicinity have also increased. New strata units in projects nearby like 8 St Thomas, The Avenir and RV Altitude are averaging between S$2,700 psf and S$3,000 psf, Ms Sim said. 

Shares of Roxy-Pacific closed flat at S$0.35 on Thursday.