In a significant development for Singapore's real estate market, Roxy Square, a prominent freehold mixed-use complex in the Katong area, has been put up for collective sale with a minimum asking price of $1.25 billion. This announcement marks a potential turning point for the East Coast property landscape.

According to marketing agent JLL, the asking price translates to a land rate of $2,094 per square foot per plot ratio (psf ppr) for the freehold site, including a land betterment charge (LBC). The LBC is a fee developers pay for the right to enhance a site's use or increase the scale of projects.

Roxy Square, constructed in three phases from the early 1980s to 2000, encompasses the Roxy Square Shopping Centre, featuring 296 shops and 26 apartments, along with the 576-room Grand Mercure Roxy hotel. The complex has been a cornerstone of the Katong community for decades.

JLL reports that retail shop owners stand to receive between $579,000 and $19.9 million each from the sale, while residential owners could see returns ranging from $1.55 million to $2.77 million. Roxy-Pacific Holdings, a significant stakeholder in the development, owns 52 retail shops and the Grand Mercure Singapore Roxy Hotel.

Under the Urban Redevelopment Authority's (URA) 2019 Master Plan, the site, boasting a gross floor area of 668,000 square feet, is zoned for commercial, residential, and hotel use. However, there is potential for the entire site to be rezoned for commercial and residential use, opening up possibilities for a high-rise mixed development.

Subject to URA approval, the future project could potentially include over 350 residential units and approximately 80,000 square feet of retail and food and beverage space. An additional 172,000 square feet could be allocated for office, hotel, or other commercial uses.

Mr. Tan Hong Boon, Executive Director of Capital Markets at JLL Singapore, noted the increasing popularity of mixed residential and commercial developments among home buyers. He emphasized Roxy Square's unique position in the Katong area, stating, "There are currently no comparable mixed-use sites to Roxy Square available for redevelopment."

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The property's proximity to Marine Parade MRT station adds to its appeal, with the possibility of a direct connection to the station concourse. This could link the future development to an underground pedestrian network with retail shops, enhancing its connectivity and commercial potential.

The collective sale of Roxy Square follows recent successful sales in the mixed-use property sector, including Delfi Orchard for $439 million and Shenton House for $538 million. These transactions have sparked renewed interest in the commercial collective sale market.

As the September 26 tender closing date approaches, industry observers are keenly watching to see how this significant offering will shape the future of Katong and impact Singapore's broader real estate landscape. The outcome of this collective sale could set new benchmarks for mixed-use developments in prime locations across the city-state.