Low Keng Huat Purchases 67 Cairnhill Road Next To Cairnhill Mansions

Glopeak Development has entered into an agreement for the purchase of 67 Cairnhill Road as well as two adjacent plots (lots 836C and 844T of Town Subdivision 27) at a cost of $100 million. Glopeak is a subsidiary of Singapore-listed property developer Low Keng Huat. The freehold site has a land area of 1,839.5 sq m or 19,800 sq ft, and is zoned for residential use under the Urban Redevelopment Authority's 2014 Master Plan with an allowable gross plot ratio of 2.8 times. While the property had been launched for sale in October 2017 with a guide price of $115 million, the tender is believed to have closed with a deal being sealed. The site of 67 Cairnhill Road is adjacent to Cairnhill Mansions at 69 Cairnhill Road. Back in February, Low Keng Huat also acquired Cairnhill Mansions $362 million ($2,311 psf/pr) through a collective sale, but the sale order approval from the Strata Titles Board has yet to be obtained. If Low Keng Huat’s acquisition of 67 Cairnhill Road and the two adjacent plots is successful, Low Keng Huat could build a high-rise residential condominium of around 55 units. However, if it also gets the sale order for Cairnhill Mansions approved, Low Keng Huat could also redevelop it together with 67 Cairnhill and that would allow the developer to build a project of around 250 to 270 units. That would allow allow the developer to pare down the overall land value to around $2,277 psf/pr, which will translate to a breakeven price of $3,100 to $3,200.