Horizon Towers takes another stab at S$1.1 billion en bloc sale

Feb 16, 2023

HORIZON Towers has been relaunched for collective sale again at an unchanged reserve price of S$1.1 billion.

Including an estimated lease top-up premium of S$277 million, this works out to a S$2,049 per square foot per plot ratio (psf ppr) for the 204,742 sq ft site.

The tender for the collective sale of Horizon Towers closes at 3 pm on Mar 30.

The 99-year leasehold site holds “significant upside potential for redevelopment into a super luxurious high-rise residential location with spectacular city views”, said exclusive marketing agent JLL Singapore on Thursday (Feb 16).

Situated in District 9 on 1.9 ha of elevated ground, the site is zoned “residential” in the Urban Redevelopment Authority’s 2019 Master Plan, with an allowable height of up to 36 storeys. Its “as-built” approved gross plot ratio is approximately 3.28228.

Tan Hong Boon, JLL’s executive director of capital markets in Singapore, said developers may build various small- and large-unit permutations as the development is not subject to minimum-average-unit size controls, given its location within the Central Area.

Given the site’s high development baseline, there is no land betterment charge for the intensification of the site, even up to the maximum 10 per cent bonus gross floor area. JLL said this reflects a unit land rate of S$1,862 psf ppr.

“At this reasonable pricing, this is a compelling redevelopment opportunity to be re-evaluated in view of the imminent changing market conditions in favour of the high-end market segment now,” Tan said.

A relaunch of the site will enable developers to “bolster their land bank and be ready to capitalise on the continued rising demand for CCR (Core Central Region) units”, added Tan, who noted a dwindling number of unsold units in the CCR, against significant increases in primary-market sales by developers over the last two years.

JLL said that an apparent shortage of high-end properties – especially premier ones around the Orchard Road area – will be felt in the near term. The agency expects rising sales volumes to continue after significant improvement in primary-market sales within the CCR over the last two years.

Built in the late 1970s, Horizon Towers was nearly sold in 2009 for S$500 million to a consortium led by Hotel Properties. The sale was disputed by a group of minority owners, and was eventually overturned by the Court of Appeal based on findings that the sales process was improperly handled.

The condominium development has been relaunched several times since 2018 for collective sale via tender at a S$1.1 billion reserve price. The last tender closed in October 2022 without a buyer.

Other offers for mega developments in Singapore remain on the table as of Thursday.

The S$890 million en bloc sale of Chuan Park, another 99-year leasehold condo development, is left in limbo as the Strata Titles Board continues to review the deal following objections from dissenting owners.

Last week, Kensington Park in Serangoon Gardens was relaunched for sale at a reserve price of S$1.28 billion. Collective sale tenders for the 314-unit development were launched multiple times at the same reserve price over 2022. The latest tender closed on Nov 18, 2022 without a sale.

https://www.businesstimes.com.sg/pro...n-en-bloc-sale