A joint-venture has acquired Cairnhill Heights for less than the $80 million asking price the owners were looking for.
Tiong Seng-Ocean Sky joint venture sealed the deal for $72.6 million
The tie-up between engineering firm Tiong Seng Holdings (TSH) and civil engineering company Ocean Sky International will redevelop the Cairnhill Heights site. Both companies are Singapore-listed. The condominium was put up for collective sale in December 2017.
The freehold 1,431.4 sq m site is located in prime district 9, in close proximity to the Orchard Road Shopping Belt.
It has a gross plot ratio of 2.8 and can be redeveloped to potentially yield 42 apartment units with a 95 sq m average. The original asking price of more than $80 million would have translated to a land rate of $2,045 psf ppr. With the final bid price of $72.6 million, analysts estimate the break-even price to be between $2,680 psf to $2,760 psf.
Cairnhill properties sold with high psf break-even prices
Another site in the same district was sold recently – Cairnhill Mansions, to Low Keng Huat (Singapore) in February this year. Already at $2,311 psf ppr, it was the highest land rate for a residential site.
Had the Cairnhill Heights site been sold at its asking price, the break-even price would have been $2,800 psf, which is a tough deal to strike especially in an area where real estate is so highly competitive.
TSH had also acquired Sloane Court Hotel and a land plot in Balmoral road last year for $80.5 million. The sites will be developed into a 12-storey condominium with a total of 80 units.