SINGAPORE - Back in 2009, Horizon Towers was to be collectively sold for S$500 million but the sale was overturned. Now the prime District 9 condominium has been launched for sale at a reserve price of S$1.1 billion.
Built in the late 1970s, the 99-year leasehold development comprises 211 units in two towers located on an elevated site with double road access. The 1.9ha 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 of around 3.28 and may be redeveloped into a luxury high-rise residential development. This could make it the largest high-rise residential redevelopment offering in the Orchard Road area in at least two decades, said sole marketing agent JLL in a press statement on Wednesday (July 4).
Tan Hong Boon, regional director of capital markets at JLL, said: "The property has all the ingredients needed for branded residences with unparalleled services, comfort and convenience."
Horizon Towers nearly sold in 2007 for $500 million to a consortium lead by Hotel Properties. However, a group of minority owners disputed the sale and it was eventually overturned by the Court of Appeal in 2009, which found that the sales process was not properly handled.
In recent weeks, two collective sales - Goodluck Garden and Cairnhill Mansions - have hit obstacles after the Strata Titles Board issued separate stop orders on owner objections.
In the case of Cairnhill Mansions, the owner of the penthouse unit has refused to withdraw her objection to the method of apportionment of the sales proceeds after two rounds of mediation, The Business Times reported this week. The issuance of the stop order puts an end to mediation, and gives the collective sales committee two weeks to apply to the High Court to approve the sale.
This comes on the heels of the stop order issued for the collective sale attempt at Goodluck Garden in Toh Tuck Road over the reserve price and development charge.
The Horizon Towers site is 150m away from 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 a reserve price of $1.1 billion, Horizon Towers’ land price works out to about $1,964 per sq ft per plot ratio (psf/pr) after factoring in a lease top-up premium estimated to be around S$220 million. There is no development charge or differential premium for the intensification of the site.
This compares favourably with the recent sale of a 99-year Government Land Sale site in Cuscaden Road for $2,377 psf ppr, said JLL. It is also in line with the sale in May of the nearby freehold Pacific Mansions site in River Valley Close for $1,987 psf ppr, JLL highlighted.
The tender for Horizon Towers closes at 3pm on Aug 7.