A New Year should bring new ray of hope and perhaps with this thought, Horizon Towers owners have again taken the en bloc sale route.
On Wednesday the owners launched their tender once again keeping the reserve price same at S$1.1 billion.
It is interesting to note that development located in Leonie Hill had met with failure with its last tender in the month of September 2018 which didn’t attract a single bid.
The 211-unit had had launched its tender in July last year days before the cooling measures were announced. They had to extend the tender by more than a month and yet didn’t find any interested bidder.
The new tender shall close on 28th of January at 3:00 PM which gives it almost a month to attract new bidders.
But time is running out for the Collective Sale Committee of Horizon Towers. They need to conclude the sale contract by 21st of May and submit an application with the Strata Titles Board for the sale order and the process of submitting the application can take anywhere between two and three months for the lawyers.
Going by the reserve price, the land rate will be around S$1,977 psf ppr. This rate is inclusive of the estimated S$228 million premium that is payable for lease top-up.
Factoring the 10% bonus GFA the rate would come to S$1,797. However, the developer wouldn’t have to pay differential premium or development charges for intensification of land use in the site that encompasses an area of 1.9 hectares.
Horizon Towers is located centrally and hence control guidelines related to development isn’t applicable to this estate.
These guidelines often specify the number of housing units in a development and mandate a unit to have minimum GFA of 85 sq m.
As per the 2014 Master Plan the Horizon Towers is located in a residential zone. Developed in the 1970s it has 99-year lease tenure and the Master Plan stipulates the maximum height of the tower to thirty-six storeys.
Great World MRT which is being built is only 150 meters from the site and the Orchard MRT interchange is within 600 meters.