Cairnhill Heights condo sold to joint venture for $72 million
A joint venture between construction and engineering firm Tiong Seng Holdings and civil engineering company Ocean Sky International has agreed to acquire Cairnhill Heights condominium for $72.6 million, less than the sellers' initial asking price of over $80 million.
Tiong Seng holds a 60 per cent stake in the joint venture company TSky Development, while Ocean Sky holds the remainder.
TSky earlier acquired Sloane Court Hotel and a small, adjoining parcel in Balmoral Road last year for $80.5 million and is developing a 12-storey, 80-unit condominium on the land.
Tiong Seng and Ocean Sky, both Singapore-listed companies, said yesterday that they will, through TSky, set up a project company to undertake the redevelopment of the Cairnhill Heights site.
Located in District 9 next to the Orchard Road shopping belt, the freehold site of Cairnhill Heights spans 1,431.4 sq m, with a gross plot ratio of 2.8.
It may be redeveloped into a residential development of about 42 units based on an average size of 95 sq m.
Owners of the condominium had last December agreed to put the project up for collective sale, and asked for over $80 million.
Tiong Seng and Ocean Sky did not provide an estimate on the land rate based on their purchase price. ZACD Group executive director Nicholas Mak estimated that the purchase price of $72.6 million would translate to an estimated break-even price of about $2,680 psf to 2,760 psf.
"The joint venture got Cairnhill Heights at a fair price. In today's market, this is the going rate for prime land sites," Mr Mak said.
Singapore-listed Low Keng Huat (Singapore) in February acquired the nearby Cairnhill Mansions in a collective sale deal for $2,311 per sq ft per plot ratio.