Roxy-Pacific JV acquires Kismis View for $102.8 mil
By Samantha Chiew
/ The Edge Singapore |
Roxy-Pacific Holdings announced that its wholly-owned subsidiary, RP Ventures, along with joint venture (JV) partner, TE2 Development, is acquiring Kismis View for $102.75 million.
TE2 Development is a private family office of Tong Eng Group’s group managing director, Teo Tong Lim. This is the third JV between the two groups.
Based on the sale price, owners of the 43-unit Kismis View (demarcated above) can expect to receive gross sale proceeds of between $1.6 million and $3.3 million each, according to JLL's Tan (Credit: JLL)
The residential site has a tenure of 99 years from Nov 21, 1983, with a total land area of about 90,863 sq ft and an existing 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 (GFA) of about 139,929 sq ft, including a 10 per cent bonus GFA for balcony. The maximum number allowed would be 168 units based on the minimum average size control of about 754 sq ft.
The Acquisition is subject to and conditional upon, inter alia, the obtaining of in-principle approval from the Singapore Land Authority (SLA) and/or other relevant authorities, to issue a fresh 99 years lease for the property and an order for sale from the Strata Titles Board or the High Court approving this sale.
RP Ventures and TE2 Development will incorporate a new company to purchase and redevelop the property. RP Ventures will hold a 60% stake in this company, while TE will hold the remaining 40%. Upon incorporating this new company, it will become a subsidiary of Roxy-Pacific. The group intends to fund this acquisition through internal funds and bank borrowings.
The sale price of $102.75 reflects a land rate of $941 psf per plot ratio (ppr), including the premium to top up the lease to a fresh 99-year term amounting to $17 million, according to Tan Hong Boon, regional director at JLL, the sole marketing agent for Kismis View. As the site has a high development baseline, there will be no development charge even for the 10% bonus GFA for balcony, he adds. If the developer were to maximize the GFA to a gross plot ratio of 1.54, the purchase price will translate to a land rate of $855 psf ppr.
Based on the sale price, owners of the 43-unit Kismis View can expect to receive gross sale proceeds of between $1.6 million and $3.3 million each, says Tan.
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