Time & date: 10 am, 6 April 2018
Venue: Grand Mercure Roxy Hotel
Big turnout: Shareholder Desmond Lin kicks off the Q&A session. NextInsight photoA year ago at Roxy-Pacific's AGM, much of the discussion was on its Australian development projects and investments.
What a change this time, with shareholders' interest -- and mangement discussion -- centred on the impending launch of the 10 Singapore sites that Roxy-Pacific acquired -- fortuitously at good prices -- in the last few years.
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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. |
Grange Road |
56 |
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4. |
Upper Bukit Timah |
34 |
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5. |
River Valley Road |
148 |
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6. |
Guillemard Lane |
97 |
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7. |
Dunearn Road |
36 |
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8. |
Derbyshire Road |
70 |
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2019 launch |
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9. |
Lorong Kismis |
168 |
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10. |
Farrer Road |
86 |
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Total no. of proposed units |
800 |
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Gross development value |
>$1 billion |
The Singapore property upcycle is evident and Roxy-Pacific wants to execute its projects at a good clip ahead of many projects of developers who bought relatively recently.
Such recent purchases would see the launch of projects for sale only more than a year later, taking into account factors such as the 6-month rent-free period that sellers are entitled to.
Roxy-Pacific has recently launched The Navian in Eunos with nearly 80% of the units sold, said executive chairman Teo Hong Lim in an update to shareholders.
Two weekends ago, it launched Harbour View Gardens, accumulating 40% sales to-date.
Watch its marketing video -->
Having bought the sites relatively early, Roxy-Pacific is able to price its units higher than earlier projected.
Harbour View Garden is selling for $1,750 psf, which is above the $1,600 that was targeted when the site was bought, said Mr Teo.
Likewise, The Navian, at $1,570 psf compared to $1,300.
Mr Teo cautioned that if 1Q2018 private property price growth of 3.1% quarter-on-quarter keeps up in subsequent quarters, "I feel that the government will probably do something."
Roxy-Pacific, in its risk-management strategy not only would like to sell fast but also "typically we try to spread our portfolio by not being in just one location. We're in mass-market, we are in mid-range, we are in prime," said Mr Teo.
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Australia bonanza
When the previous Singapore property boom was decidedly cooled down by government intervention, Roxy-Pacific headed overseas. |
Part 2 tomorrow: Q&A at the AGM
