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Roxy-Pacific partners Tong Eng group MD to buy Kismis View for S$102.75m
ROXY-PACIFIC Holdings and the group managing director of Tong Eng Group, Teo Tong Lim, have joined hands to acquire a residential leasehold site in the Upper Bukit Timah area for S$102.75 million.
Kismis View, a 43-unit development, has been collectively sold to a 60-40 joint venture between Roxy-Pacific subsidiary RP Ventures and Mr Teo's private family office TE2 Development.
This is the third joint venture between the two groups, Roxy-Pacific said in a regulatory filing on Friday.
Under the 2014 Master Plan, the 90,863 sq ft site has a gross plot ratio of 1.4.
The site may be redeveloped into a low-rise apartment development of up to five storeys, with a total gross floor area of about 139,929 sq ft including a 10 per cent bonus gross floor area (GFA) for balcony.
The maximum number allowed would be 168 units, based on the minimum average size control of 70 sq m, sole marketing agent JLL said.
The latest deal brings Roxy-Pacific's share of total residential landbank and unsold inventory to around 570 units as at Friday, based on The Business Times estimates.
The sale price of S$102.75 million reflects a land rate of about S$941 psf per plot ratio, including an estimated premium of S$17 million to top up the lease to a fresh 99-year term.
JLL regional director Tan Hong Boon said: "As the site has a high development baseline, there will be no development charge, even for the 10 per cent bonus GFA for balcony. Should the developer maximise the GFA to 1.54, the land rate would reflect S$855 psf per plot ratio."
The Upper Bukit Timah area is a prime residential enclave that appeals to both locals and expatriates due to its proximity to good schools and an array of eateries and amenities.
Sitting on elevated ground, the site can be redeveloped into a boutique project that offers views towards the Bukit Timah Hill and reserve, JLL said.
Owners could receive gross sale proceeds of between S$1.6 million and S$3.3 million, added Mr Tan.
Roxy-Pacific said the cost of the acquisition will be financed by internal funds and bank borrowings.