The owners of Horizon Towers are starting the New Year by giving collective sale another go. The reserve price remains unchanged at $1.1 billion, which translates to a land rate of $1,977 psf per plot ratio (psf ppr), after factoring the lease top-up premium estimated at $228 million.

As the site has a high development baseline, no development charge or differential premium for intensification of land use is payable, says Tan Hong Boon, JLL regional director of capital markets, the sole marketing agent for the collective sale. If the 10% bonus gross floor area is included, the land rate would be adjusted to $1,797 psf ppr.

This is a relaunch of Horizon Towers’ collective sale by JLL after the first attempt closed last September without a bid. This was because the launch of the first tender had coincided with the announcement of the new property cooling measures last July. With effect from July 6, 2018, additional buyer’s stamp duty for developers doubled from 15% to 30%, of which 5% is payable upfront and is non-remittable.

Located along Leonie Hill Road in prime District 9, Horizon Towers was built in the late 1970s. It has 211 units in twin towers located on an elevated site of 1.9 ha, with double road accesses. The site can be redeveloped into a new project of up to 36 storeys, with a gross plot ratio of 3.28228.

As the site is located within the Central Area, it is not subject to an average unit size of 85 sqm, says JLL’s Tan. This allows the developer to build smaller units and keep the quantum palatable for potential buyers, he adds.

The site is within walking distance of two MRT stations: Great World MRT station and the Orchard MRT station on the Thomson-East Coast Line. The shopping malls along Orchard Road such as Ngee Ann City, Wisma Atria and Paragon are a 10-minute walk away. River Valley Primary School is also located within a 1km range, while Kim Seng Park and the riverfront promenade are about 550m walk from Horizon Towers.

The tender for Horizon Towers will close on Jan 28.