@ ROXY-PACIFIC's AGM: Busy year with S'pore project launches

 
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.

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.

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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.

Part 2 tomorrow: Q&A at the AGM