Owned by Hong Leong Group, the building sits on a land area of 1,833.5 square metres and consists of a four-storey podium and 17-storey office tower. It has a gross floor area of 199,691 square feet and has an unexpired lease of 60 years. The site has also obtained permission from the Urban Redevelopment Authority to be developed into a 42-storey luxury residential apartment block with commercial space on the first floor.
Roxy-Pacific is confident the prime site will be much sought-after, with its location near Marina Bay, Tanjong Pagar MRT, the two Integrated Resorts and the future Tanjong Pagar Waterfront City.
"A reference property nearby that was launched recently was 76 Shenton Way which was sold within a day, with the highest selling price achieved at $2,600 per square feet," said Teo Hong Lim, CEO of Roxy-Pacific.
Tay Huey Ying, director of research and advisory at Colliers International, shares the sentiment and said demand for inner-city residential developments remain high due to their good rental prospects. However, the 70 Shenton Way's 60-year lease may set prices back.
"A 99-year lease is more attractive than a 60-year lease. The ability for the developers to top it up to 99 years is critical." she said, adding that such a development will require the approval of various permits including the lease top up. Coupled with tear-down and construction time, the development will typically take three years to complete.
Meanwhile, the other consortium partners are Macly Capital, Pinnacle Assets, Fission Holdings and investor Chee Hsian Sing, with each party holding a 20-per-cent stake in the property. Roxy-Pacific said the acquisition is financed through internal cash resources and is not expected to impact net earnings per share and net tangible assets per share for this financial year.
- TODAY, 6 April 2010
