| Among property developers, Roxy-Pacific Holdings has gotten off to an early start by launching a project in Singapore at end-2017. As of 5 Feb, says Roxy-Pacific, 23 units of The Navian, a condominium, has been sold, or nearly 50% of the 48 units to be built.  The Navian: A freehold six-storey condo in Jalan Eunos. Artist's illustrationThe Navian arose from Roxy-Pacific's landbanking way before the recent waves of en-bloc property sales. In Nov 2015, Roxy-Pacific had bought a landed home site in Jalan Eunos and followed up with neighbouring sites in Sept 2016. (See: ROXY-PACIFIC: Singapore lank-banking resumes with Pasir Panjang, Eunos acquisitions) |
After Chinese New Year, Roxy-Pacific will launch Harbour View Gardens in Pasir Panjang, followed by the Grange Road project (April).
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And so it goes.
Most, if not all, of Roxy-Pacific's 10 development sites were bought earlier than other developers, and market rates in the respective vicinity have since moved up.
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Roxy Pacific |
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Source: DBS Vickers |
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The sites will yield relatively small developments but the profit margins will make up for it.
"By getting these niche sites at competitive prices, we can push the margin. It won't be the typical 10% margin that some developers do," said Roxy-Pacific CEO Teo Hong Lim said at a FY17 results briefing.
Roxy's project pipeline is as follows, which would yield 800 homes with a total gross development value of more than S$1 billion. Not all will be attributable to Roxy as some of the projects are JVs.
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No. |
New Singapore projects: |
Residential units |
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2018 launch |
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1. |
The Navian |
48 |
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2. |
Harbour View Gardens |
57 |
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3. |
120 Grange |
56 |
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4. |
826/A-834/A Upper Bukit Timah Road |
34 |
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5. |
River Valley Road |
148 |
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6. |
2, 6, 12 & 14 Guillemard Lane |
97 |
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Possible 2018 launch |
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7. |
386/A/B, 388/A/B, 390/A/B, 392/A/B Dunearn Road |
36 |
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8. |
5 Derbyshire Road |
70 |
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2019 launch |
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9. |
15, 17 & 19 Lorong Kismis |
168 |
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10. |
22 Farrer Road |
86 |
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Total no. of proposed units |
800 |
Adding to the income from these new projects will be pre-sale revenue from property development projects of S$459.4 million, which will be progressively recognised from 1Q2018 to 2020.
About 90% of this $459.4 million will come from overseas projects.
This reflects the forays in Malaysia and Australia that Roxy-Pacific undertook in the past few years when the Singapore property market quietened down under the government's restrictive measures as well as an oversupply in the market.
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S$459.4 million pre-sale revenue yet to be recognised |
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Type of development |
Units sold |
Balance attributable revenue (S$‘m) |
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Singapore |
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1. |
Trilive |
Residential |
100% |
$ 16.8 |
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2. |
Straits Mansions |
Residential |
100% |
$ 31.4 |
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Malaysia |
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3. |
Wisma Infinitum - The Colony Wisma Infinitum - The Luxe |
Residential Residential |
70% 30% |
$ 50.2 $ 18.6 |
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Australia |
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4. |
The Hensley, Potts Point |
Residential |
95% |
$ 71.5 |
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5. |
Octavia, Killara |
Residential |
95% |
$ 48.4 |
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6. |
West End Glebe, Tower 1 (Foundry) |
Residential |
86% |
$ 144.2 |
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7. |
New World Towers, Peel Street |
Residential |
63% |
$ 31.1 |
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Total $459.4 |
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 CFO Koh Seng Geok. NextInsight file photoCFO Koh Seng Geok says: One project (The Hensley) in Australia will be completed this year, and the entire pre-sales revenue currently at A$72.6 million will be booked at one go. In 2019, it will be the turn of 2 projects (Octavia and Glebe), whose current pre-sales revenue total A$240 million. |
Roxy-Pacific executive chairman Teo Hong Lim at the FY2017 results briefing. Photo by Leong Chan Teik
Roxy-Pacific has two other business segments:
Hotel ownership: It contributed S$44.3 million in revenue and S$9.1 million in net operating profit in 2017.
Its Noku Maldives hotel will fully open in 2018 -- 20 villas are yet to open while 30 already are.
Property investment: It contributed S$10.8 million in revenue in 2017. This year, the segment will see rental income from 1 property in Singapore, 2 in Australia and 2 in New Zealand.
For more info, see Roxy-Pacific's Powerpoint materials here.
