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Horizon Towers gives collective sale another shot; Tanah Merah Mansion launches collective sale

03 January 19 | The Business Times


OWNERS at Horizon Towers seem to have made nailing an en bloc deal a new year's resolution, as they relaunched their collective sale tender on Wednesday at the same S$1.1 billion reserve price as before.

The 211-unit Leonie Hill development's first tender closed in September without a single bid. That tender was first launched in July. Its closing date was then extended by over a month because of cooling measures to the private housing market that came into effect just days after the tender period began.

This time, the tender will last around a month and will close on Jan 28 at 3pm.

But time is of the essence for Horizon Towers.

The Business Times reported in September that Horizon Towers owners have until May 21 to conclude a sale contract and apply to the Strata Titles Board for a sale order, and two to three months are needed by lawyers to make an application to the board.

The reserve price translates to a land rate of about S$1,977 per square foot per plot ratio (psf ppr) after factoring in the lease top-up premium estimated to be in the region of S$228 million, or S$1,797 psf ppr inclusive of 10 per cent bonus gross floor area (GFA).

There is no development charge or differential premium for intensified use of the 1.9 hectare site.

The development is within the central area and therefore not subject to development control guidelines that stipulate the maximum number of housing units in private condo developments to be the proposed building GFA by 85 sq m.

The 99-year leasehold estate was built in the 1970s and is zoned "residential" in the 2014 Master Plan with an allowable height of up to 36 storeys.

The upcoming Great World MRT station and Orchard MRT interchange are 150m and 600m away respectively.

A decade ago, a S$500 million collective sale of Horizon Towers fell apart following a dispute among the owners, and the Court of Appeal's finding that the sales process was improperly handled.

Separately, Tanah Merah Mansion, a freehold condominium, is expected to launch for collective sale next week, at an asking price of S$80 million.

Located at 137 Tanah Merah Kechil Road, the residential site has an allowable gross plot ratio of 1.4, and a site area of 48,643.6 sq ft.

The reserve price translates to a land rate of roughly S$1,175 per square foot per plot ratio.

Tanah Merah Mansion currently comprises 36 units on four storeys with a total strata area of 49,062.3 sqft.

The site has a maximum gross floor area of 68,101 sqft and can be developed into approximately 90 units of apartments averaging about 750 sq ft per unit, Propnex consultant Richard Hau said.