Horizon Towers launched for sale
Horizon Towers Launced For Sale at $1.1b
Horizon Towers, a collective sale site in the prestigious Leonie Hill locale, is launching for sale by tender by sole marketing agent JLL.
Sitting on elevated grounds in the coveted District 9, the site enjoys double road access with wide frontages nestled within the tree-lined Leonie Hill and Leonie Hill Road, exuding exclusivity amidst serenity. The 99-year leasehold development comprises 211 units in two towers.
The sprawling 1.9 ha site is zoned “Residential” in the 2019 Master Plan with an allowable height of up to 36 storeys. It has an “as-built” gross plot ratio (“GPR”) of around 3.28 and may be redeveloped into a luxury high-rise residential development with spectacular city views all round.
“A luxurious high-rise masterpiece on the elevated and sprawling grounds of Leonie Hill, complete with comprehensive amenities and bespoke services for its future well-heeled residents can be envisaged to be delivered by a very discerning developer on this premier address in the Orchard Road neighbourhood,” says Mr. Tan Hong Boon, Executive Director of Capital Markets at JLL Singapore. “The scale of the site will undoubtedly add to the grandeur of the development – a key selling feature that the developer should capitalize on.’’
At a reserve price of $1.1 billion, Horizon Towers’ unit land rate reflects about $2,049 per sq ft per plot ratio (psf/pr) over its 204,742 sq ft site at the GPR of ~3.28, inclusive of an estimated $277 million lease top-up premium. As there is no land betterment charge (formerly known as ‘development charge’) payable for intensification of the site even with the 10 per cent bonus gross floor area due to a high development baseline, the reflected unit land rate is $1,862 psf/pr.
“This is by far the most reasonably priced private residential site in and around the Orchard Road neighbourhood this collective sale cycle and it presents a great opportunity for developers and consortiums to acquire this one-of-its-kind sprawling choice site with its unparalleled attributes,” said Mr. Tan.
“In the past few quarters, we have seen private residential prices breaching new highs in both the Outside Central Region (mass market segment) and the Rest of Central Region (mid-tier segment), rising significantly faster than the relatively flattish price trend of the Core Centre Region (“CCR”, high-end segment). This lagging price movement is expected to be bumped up by the other two segments and propel the rise in prime residential prices towards a new norm,” noted Mr. Tan.
Given Singapore’s safe-haven reputation amidst the post-pandemic environment and uncertainties caused by geopolitical conflicts, inflation and rising interest rates, JLL expects both locals and foreigners to enter the market and be increasingly committing to this prime asset class in the CCR, especially around the Orchard Road locale, for their capital preservation and investment diversification.
“With the decreasing unsold stock of new residential units in the CCR, especially quality and sizable luxury apartments around Orchard Road, and the projected incoming high demand for quality and bespoke apartments, we expect the Horizon Towers site to attract a good number of discerning developers capable of delivering an exceptional quality development comprising approximately 560 luxurious units at an average size of 1,200 sq ft,” adds Mr. Tan.
The tender for Horizon Towers closes on Thursday, 20 October 2022 at 3.00 p.m.
