Roxy Square up for collective sale with S$1.25 billion minimum price
The development is located in front of the newly opened Marine Parade MRT station
THE freehold Roxy Square Shopping Centre and Grand Mercure Roxy Hotel, collectively known as Roxy Square, has been launched for sale via tender at a minimum price of S$1.25 billion.
The minimum price reflects a unit land rate of about S$2,094 per square foot per plot ratio (psf ppr) and is inclusive of a land betterment charge (LBC) at the base gross plot ratio of about 3.86, said sole marketing agent JLL on Wednesday (Jul 24).
Factoring in an additional 10 per cent for the bonus gross floor area (GFA) for the residential component with the LBC payable, the unit land rate would be around S$2,034 psf ppr, it added.
The development was built in three phases from 1980s to 2000, and comprises 296 shops and 26 apartments. The hotel component currently has 576 rooms.
Under the Urban Redevelopment Authority (URA)’s 2019 Master Plan, the site is partially zoned as “Commercial and Residential” with a gross plot ratio of 3 along East Coast Road. It is also partially zoned as “Hotel” on the side fronting Marine Parade Road.
According to the property consultancy firm, the entire Roxy Square site may be rezoned into “Commercial and Residential” and be redeveloped into a high-rise mixed-use development consisting of residential, commercial, and/or hotel components.
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Roxy Square has a total site area of 163,305 square feet (sq ft) with a GFA of 668,000 sq ft. Subject to URA’s approval, a developer could potentially configure the allowable GFA into a mixed-use development with 350 residential units and 80,000 sq ft of retail and F&B space. The remaining GFA of about 172,000 sq ft could be used for office, hotel, or other compatible commercial uses.
JLL’s executive director for capital markets Tan Hong Boon said: “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.”
The site is located in front of the newly opened Marine Parade MRT station. JLL said there is a provision for a knock-out-panel which will allow the future development to be integrated directly with the MRT station. This will allow for connectivity between the station concourse level to the underground pedestrian network with an array of shops.
Highlighting the development’s proximity to the new MRT station, Tan added: “There are many success stories of developers achieving premium prices for such mixed-use projects, especially those which are typically transit-oriented with an MRT station and even a bus interchange integrated into the site.”
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, said JLL.
The tender for Roxy Square will close on Sep 26.
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