Roxy Pacific Holdings is expected to launch three more projects in Q4 2011 but the property and hospitality group is now more cautious about acquisitions, given the increasing macro risks, said CIMB in a report.
“Despite recent macro uncertainties, we expect ROXY to launch three more projects in 4Q11,” it said. “Everitt Building at 116 Changi Rd is expected to launch soon, with New Changi Hotel (80 Changi Rd) and Singapura Theatre (55 Changi Rd) to follow in Dec 11. All three projects are slated for strata-titled sales, and we expect launch performances to drive share price performance over 4Q11-1Q12.”
With the Singapore office market facing inflection points ahead, CIMB noted that there “were likely few, if any, concrete offers for Marina House (70 Shenton Way) which was put up for sale. As such, management is likely to go ahead with the project launch in 1Q12.”
The report added that Roxy Pacific had S$65 million in available cash and fixed deposits as of Q2 2011 and that its additional debt had hit S$150 million.
“Despite ample ammunition currently, management would likely remain cautious in terms of acquisitions given heightened macro risks. Hence we expect acquisitions to stay bite-sized (<S$50m) with a preference for retail projects or mixed developments with sizable retail components,” it said.
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