Ravi Chandran
The tender closing date for the collective sale of Horizon Towers has been extended to 12 September 2018 (Wednesday), 3.00 pm.
Horizon Towers was launched for sale by tender on 5 July 2018 with the closing date originally scheduled on 7 August 2018. On the same evening, the Government announced the fresh round of residential market cooling measures effective 6 July 2018, increasing the rates of the Additional Buyer’s Stamp Duty (“ABSD”) and reducing the mortgage loan-to-value limits across the board. In addition, for residential land purchases, there would also be a non-remissible ABSD of 5 per cent.
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In view of the changes, the Collective Sale Committee (“CSC”), in consultation with JLL and their lawyers, Lee & Lee, have made the decision to extend the tender closing date.
The decision was made following feedback from developers that they remain interested in the prime site but would now require more time to observe and re-assess the market going forward, re-evaluate the project in the lights of these new measures and monitor the sales of new projects.
Horizon Towers enjoys unparalleled location and physical attributes and possesses all the ingredients needed for a luxury masterpiece development with spectacular all round city views.
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The site has an existing “as-built” approved gross plot ratio (“GPR”) of around 3.28228. As it also has a high development baseline, no development charge is payable even with the additional 10 per cent bonus gross floor area for the balcony.
Notwithstanding the new market cooling measures, at the reserve of $1.1 billion, which translates to a land rate of $1,786 psf/pr at GPR 3.6105 after factoring in the 10 per cent bonus gross floor area plus a lease top-up premium estimated to be in the region of $220 million, Horizon Towers remains an attractive value proposition.
Built in the late 1970’s, the 99-year leasehold Horizon Towers comprises 211 units in two towers located on an elevated site with double road accesses. Nestled in the very prime District 9, the site exudes exclusivity amidst the tree-lined serenity of Leonie Hill and Leonie Hill Road.
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The sprawling 1.9 ha site is zoned “Residential” in the 2014 Master Plan with an allowable height of up to 36 storeys. It has an “as-built” gross plot ratio (“GPR”) of around 3.28 as confirmed with the Urban Redevelopment Authority (“URA”) and may be redeveloped into a luxury high-rise residential development with marvelous city views all round.
The site is probably the largest high-rise residential redevelopment offering in the Orchard Road area in at least two decades.
Image credit: JLL
“Given the premier address, a sprawling ground in the Orchard Road neighbourhood and its high-rise attributes, it is compelling for a discerning developer and its architect to deliver a luxurious masterpiece with comprehensive amenities and facilities, complete with bespoke services for its future well-heeled residents,” said Tan Hong Boon (Regional Director of Capital Markets at JLL) said earlier at the launch. “The property has all the ingredients needed for a branded residences with unparalleled services, comfort and convenience,” adds Mr Tan.
The site has an excellent connectivity, being a mere 150m to the upcoming Great World MRT station and 600m to the Orchard MRT Interchange (Thomson-East Coast Line), which is integrated into the existing Orchard Station at ION Orchard. A walk to the nearby Ngee Ann City is under ten minutes.
Splendidly located in the luxury exclusive precinct of Leonie Hill, Horizon Towers entices both the locals and expatriates with its excellent connectivity to the myriad of shopping, entertainment, education and cultural offerings, top-notch medical services and a host of other amenities. Within one km from the development is also the River Valley Primary School, for families with children budding to enroll into a prestigious school.
Kim Seng Park and the riverfront promenade are a short 550m walk to the South, suitable for residents who wish to take a respite or carry out their daily evening exercises. Not least to mention is the bustling Robertson Quay along the river with the great varieties of Food & Beverage options and entertainment offerings as well.
The unit land rate of Horizon Towers compares favourably with the recent 99-year Government Land Sale site at Cuscaden Road sold for $2,377 psf/pr, the freehold collective sale sites of Park House in the same district, which achieved a record-breaking unit land price of $2,910 psf/pr, the Nassim Road site at $2,744 psf/pr, and the earlier Pacific Mansions site at River Valley Close at $1,987 psf/pr, as well as the Cairnhill Mansion and the adjoining sites at $2,311 psf/pr and $2,132 pf/pr respectively.
Horizon Towers was completed in 1984 but has a remaining lease of 60 years, as it sits on a 99-year leasehold site starting from 1979.
Horizon Towers’ first en bloc attempt in early 2007 failed. 87 per cent of owners had then agreed to the sale of the property to to a consortium led by Hotel Properties, but a protracted dispute between minority owners and the members of the collective sale committee resulted in the deal being overturned in 2009. Some minority owners then took the chairman and a member of the collective sale committee to court over costs and expenses incurred during the dispute, and the case was finally concluded in the High Court in October 2013.
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