By KALPANA RASHIWALA

THE top bidder for the 99-year condo site on Upper Thomson Road on Thursday has been revealed as a unit of Hong Kong tycoon Li Ka-shing's Cheung Kong Holdings.

This was confirmed yesterday by Raymond Chui, general manager of the group's Singapore-based unit Property Enterprises Development.

Cheung Kong unit Treasure Well Investments' bid was for $251.3 million or about $533 per square foot per plot ratio (psf ppr) - the highest seen for a private housing site at a state land tender this year.

Mr Chui said the estimated breakeven cost of about $850 to $900 psf forecast by analysts quoted in the media was pretty accurate. 'We'll probably develop around 340 to 350 units,' he added.

Treasure Well's top bid was 21.5 per cent above the next highest offer, which was made by Singapore's Far East Organization.

When asked if Cheung Kong regretted having paid such a wide margin, especially in hindsight as the government announced its H1 2010 land sales programme the next day with substantial supply in the confirmed list, Mr Chui replied: 'We've done our sums. The site is in a very good location and we have confidence in the future of the Singapore property market.'

The Upper Thomson Road site is located opposite the Singapore Island Country Club's Island Golf Course and Lower Peirce Reservoir.

The group will also be developing a 295-unit condo on a 99-year-leasehold site facing West Coast Park and overlooking the sea.

That is likely to be launched next year, possibly in the second quarter, Mr Chui revealed.

The project will comprise fairly regular-sized units. 'Our showflat is not yet ready,' he added.

Cheung Kong clinched the West Coast site at a state tender in March last year, paying $110.44 million or $305 psf ppr.

Interestingly, it also outbid Far East Organization for that site, but with a much narrower winning margin of just 1.4 per cent.

This article was first published in The Business Times.