The purchase price of Cairnhill Heights is lower than the initial asking price of over $80 million.
TSky Development, a joint venture between construction firm Tiong Seng Holdings and investment holding company Ocean Sky International, has agreed to acquire the Cairnhill Heights condominium at 16 Cairnhill Rise for $72.6 million.
To be funded by TSky Development’s internal resources and bank facilities, the purchase price is lower than the sellers’ initial asking price of over $80 million.
Located in prime District 9 near the Orchard Road shopping belt and Mount Elizabeth Hospital, the freehold development sits on an approximately 15,407 sq ft site zoned for residential use with a gross plot ratio of 2.8.
The site could be redeveloped into a residential development of around 42 units based on an average size of 1,022 sq ft, the two companies said in an SGX filing on Monday (2 Apr).
Tiong Seng holds a 60 percent stake in TSky Development, while Ocean Sky owns the remaining 40 percent.
Both companies do not expect the acquisition to materially affect their net tangible assets and earnings per share for the current financial year ending 31 December.