Roxy-Pacific buying freehold Dunearn Court for S$36.3m

Singapore

A WHOLLY-OWNED subsidiary of Roxy-Pacific Holdings has inked a conditional deal to buy Dunearn Court through a S$36.3 million collective sale.

The price works out to S$1,371 per square foot per plot ratio inclusive of an estimated development charge (DC) of S$550,000, said Knight Frank, which brokered the deal.

Located between the Tan Kah Kee and Botanic Gardens MRT stations on the Downtown Line, the 19,203 sq ft freehold Dunearn Court site is zoned for residential use with a 1.4 plot ratio under the Urban Redevelopment Authority's Master Plan 2014.

Dunearn Court comprises 12 apartments; owners will receive a gross sale price of about S$2.91 million to S$3.12 million per unit - which works out to $2,004 psf to $2,140 psf - upon completion of the sale, Knight Frank added.

Dunearn Court's collective sale was launched in late July. The tender closed on Sept 6 without the reserve price being met. Roxy-Pacific inked a private-treaty deal to buy the property after owners agreed to its price of S$36.3 million, which was lower than the initial reserve price, understood to be slightly over S$37 million, but still above the S$35 million recent valuation of the property.

When contacted, Roxy-Pacific executive chairman Teo Hong Lim told BT that the group plans to redevelop the site into a five-storey apartment project with 35 units, which are likely to comprise two and three-bedders. He estimates the project's breakeven cost at close to S$2,000 psf.

Market watchers note that a potential collective sale is also in the works at the next-door Shelford Green. BT reported earlier this week that its owners are seeking S$140 million or S$1,505 psf ppr; no DC is expected to be payable for the 66,392 sq ft site.

If Roxy-Pacific were to clinch this site, it could potentially amalgamate the two plots for a larger redevelopment scheme, say observers. Mr Teo would not be drawn into talking about Roxy-Pacific's interest level in Shelford Green.

Dunearn Court will be the fourth residential land acquisition for Roxy-Pacific so far this year. The four purchases add up to S$219 million.

Roxy-Pacific's three acquisitions earlier this year were along along Upper Bukit Timah Road, River Valley Road and Guillemard Lane.

Commenting on the Dunearn Court collective sale, Knight Frank's head of investment and capital markets, Ian Loh, said: "The new project will cater to a wide variety of buyers, given its strong locational offering. It is near the Singapore Botanic Gardens and within a one-km radius from several established schools, including Nanyang Primary School and Nanyang Girls' High School."

READ MORE: En bloc contagion spreads to commercial, mixed-use properties