Horizon Towers has extended its collective sale tender closing date by more than a month, after cooling measures that took effect the day after the site was launched for sale on July 5 with a $1.1 billion reserve price.
The collective sale committee, in consultation with marketing agent JLL and lawyers Lee & Lee, decided to extend the deadline in the light of those changes, which include an increase in the Additional Buyer's Stamp Duty (ABSD) rates, a tightening of mortgage loan-to-value limits across the board, and a non-remissible ABSD of 5 per cent for residential land purchases, JLL said in a statement yesterday.
"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 light of these new measures and monitor the sales of new projects," it added.
The tender closing date, previously Aug 7, is now Sept 12. If the sale does go through, the District 9 site could well be the first billion-dollar deal in the current collective sale upcycle.
Its reserve price translates to a land rate of $1,786 per square foot per plot ratio at a gross plot ratio (GPR) of 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. No development charge is payable for the site, which has an "as-built" GPR of around 3.28.
In 2009, Horizon Towers' $500 million collective sale bid fell apart following a dispute among the owners, and the Court of Appeal's finding that the sales process was improperly handled.