Roxy-Pacific Holdings - To buy Grange Road freehold residential site
- Roxy-Pacific Holdings announced that it would acquire the development at 120 Grange Road for S$48.5m. The freehold residential site has an existing plot ratio of 2.1 and an estimated total land area of 15,780 sq ft.
- The group reported that the cost of the acquisition will be financed by internal funds and bank borrowings and is not expected to have a material impact on consolidated earnings and net tangible assets for the current financial year.
- We like that management continues to build its land-bank carefully amidst an uncertain market and note that the group currently sits on total pre-sale revenues of S$399.2m which will be progressively recognized from 4Q16 to 2020.
- Maintain HOLD with an unchanged fair value estimate of S$0.52 per share.