Collective sale fever heightens

Source: CBRE
Cairnhill Mansions will make its fifth collective sale attempt and will be joined this time around by the adjacent bungalow at 67 Cairnhill Road
The Cairnhill neighbourhood in prime district 9 has undergone substantial changes over the past decade and a half, largely owing to collective sales. Further renewal could take place as one of the vestiges of the past, Cairnhill Mansions, makes a fifth collective sale attempt in the coming weeks.
The difference this time around is that the owner of the bungalow next door, at 67 Cairnhill Road, has agreed to put the property for sale at the same time as Cairnhill Mansions. The house is said to belong to Lien Kwang Wah, according to an Inlis search. Lien is said to be the brother of the founder of Overseas Union Bank, Lien Ying Chow.
The house at 67 Cairnhill Road sits on a 19,800 sq ft plot and has a gross floor area of 55,440 sq ft. Meanwhile, Cairnhill Mansions, built in 1963, comprises a block of 61 units on a 43,103 sq ft freehold site with a GFA of 172,239 sq ft, including a 10% bonus GFA for balconies.
The guide price for Cairnhill Mansions is $362 million, which translates into $2,101 psf per plot ratio (ppr). Subject to URA confirmation, there is no development charge (DC) payable, says Galven Tan, director of capital markets at CBRE, who is handling the sale.
If Cairnhill Mansions is successfully amalgamated with the bungalow site at 67 Cairnhill Road, it will have a total land area of 62,900 sq ft, with potential GFA of close to 228,000 sq ft. The combined site could yield about 190 units, assuming an average size of 1,200 sq ft for the new development.
CBRE has secured more than 80% consensus from the owners of units at Cairnhill Mansions for a collective sale. The development will be launched for public tender in the coming weeks. CBRE has also been appointed exclusive marketing agent for 67 Cairnhill Road, which will also be launched for sale in due course, says Tan.