Horizon Towers makes fresh attempt at collective sale with $1.1 bil reserve price

SINGAPORE (EDGEPROP) - Horizon Towers, a 99-year leasehold residential development in the Leonie Hill area in prime District 9, is launching for collective sale by tender with a reserve price of $1.1 billion, according to a Sept 8 press release by sole marketing agent JLL.

The reserve price works out to a land rate of about $2,049 psf per plot ratio (psf ppr) after factoring in an estimated $277 million lease top-up premium. As the site has a high development baseline, no land betterment charge is payable for intensification of the site. Taking into account the 10% bonus gross floor area (GFA), the land rate would be adjusted to $1,862 psf ppr.

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“This is by far the most reasonably priced private residential site in and around the Orchard Road neighbourhood this collective sale cycle and it presents a great opportunity for developers and consortiums to acquire this one-of-its-kind sprawling choice site with its unparalleled attributes,” says Tan Hong Boon, executive director of capital markets at JLL Singapore.

Built in the 1970s, Horizon Towers has a total of 211 units. It sits on a 1.9ha elevated site with double road access from Leonie Hill and Leonie Hill Road. The site is zoned for residential use with an “as-built” gross plot ratio of around 3.28.

The site can be redeveloped into a new project of up to 36 storeys. “We expect the Horizon Towers site to attract a good number of discerning developers capable of delivering an exceptional quality development comprising approximately 560 luxurious units at an average size of 1,200 sq ft,” adds Tan.

Horizon Towers is within walking distance of two MRT stations: Great World MRT Station and the Orchard MRT Station on the Thomson-East Coast Line. The shopping malls along Orchard Road such as Ngee Ann City, Wisma Atria and Paragon are also within walking distance. Meanwhile, River Valley Primary School is also located within a 1km range.

Horizon Towers was put up for collective sale in September 2018 at a reserve price of $1.1 billion, but the tender closed with no bids as it had coincided with the announcement of property cooling measures in July 2018. It was then relaunched for collective sale in January 2019 at the same reserve price, but failed to find a successful bidder.

In the immediate vicinity of Horizon Towers is the upcoming 540-unit Irwell Hill Residences, a 99-year leasehold development by City Developments (CDL). The project sits on a Government Land Sale (GLS) site at Irwell Bank Road that was awarded to CDL in January 2020 for $583.9 million, or $1,515 psf ppr. Since its launch in April 2021, 90% of units have been taken up at an average price of $2,693 psf, based on caveats lodged.

The tender for Horizon Towers will close on Oct 20 at 3pm.