http://www.businesstimes.com.sg/prem...-site-20130104
Published January 04, 2013
Roxy-Pac buys $24.5m Wilkie Terrace site
By jasmine ng
A UNIT of listed property developer Roxy-Pacific Holdings has purchased a freehold residential site off Dhoby Ghaut/Selegie Road for $24.5 million.
This is Roxy-Pacific's third purchase in the vicinity in six months; the other two are Sophia Mansions at Adis Road and 7/9/11 Wilkie Terrace, which adjoins the newly bought land parcel.
The latest site at 13/15 Wilkie Terrace has an estimated total land area of 9,324 square feet and an existing gross plot ratio of 2.1.
The deal was sealed through RH Rochor, an indirect subsidiary of Roxy-Pacific through Roxy Homes.
Marketing agent Jones Lang LaSalle said the site currently houses a bungalow owned by a family. The sale price of $24.5 million reflects a land rate of $1,259 psf per plot ratio, after factoring in a marginal development charge.
In a statement yesterday, Roxy-Pacific said RH Rochor intended to amalgamate the site with the freehold site at 7/9/11 Wilkie Terrace that it had acquired in November 2012.
RH Rochor had acquired the land parcel at 7-11 Wilkie Terrace for $33 million. The site has an estimated total land area of 13,209 sq ft and an existing gross plot ratio of 2.1.
Karamjit Singh, Jones Lang's head of investments & residential, said the narrowing gap in land prices between the upper and lower ends of the residential market has caused some developers to shift their attention to freehold land in more central locations.
"Some may be building up their land banks in anticipation of an upswing in the higher end of the market," he added.
The cost of the latest acquisition will be financed by internal funds and bank borrowings.
It is not expected to have a material impact on the group's consolidated earnings and net tangible assets per share for the financial year ended Dec 31, 2012.
Shares of Roxy-Pacific closed 1.5 cents higher at 58 cents yesterday.