Horizon Towers extends en-bloc tender closing date

/ EdgeProp
July 25, 2018 12:16 PM SGT
The tender closing date for the collective sale of Horizon Towers has been extended to September 12, from the original closing date of August 7.
The 211-unit, 99-year leasehold Horizon Towers was launched for sale by tender on July 5. On the same evening, the government announced the fresh round of residential market cooling measures effective July 6, increasing the rates of the Additional Buyer’s Stamp Duty (ABSD) and reducing the mortgage loan-to-value limits across the board.
In addition, a non-remissible ABSD of 5% for residential land purchases was announced.
In view of the changes, the Collective Sale Committee, in consultation with JLL and its lawyers, Lee & Lee, has decided to extend the tender closing date.
According to JLL, the decision was made following feedback from developers that they remain interested in the prime site, and would need more time to re-evaluate the project in light of the new measures and to monitor the sales of new projects.
The reserve price of $1.1 billion translates into a land rate of $1,964 psf per plot ratio (ppr), after factoring in the lease top-up premium, which is estimated at $220 million.
After factoring in the 10% bonus gross floor area due to a high development baseline, the unit land rate is $1,786 psf ppr. Despite the new market cooling measures, Horizon Towers remains an attractive value proposition, according to JLL.
Meanwhile, the tender closing date for freehold 32-unit Dalvey Court has also been extended, from August 2 to August 30.