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Overpriced? The developer who buys Horizon Towers will have to pay about $31 million to top up the lease to the original 99 years.

BT understands that notices made available to Horizon Towers' owners recently revealed that the tender attracted four bids, all below the reserve price. Sources say the bidders declined requests to raise their bids subsequently to meet the reserve.

Horizon Tower's marketing agent, First Tree Properties, is now expected to team up with other consultants to look for a buyer through private treaty.

The estate has a land area of 204,742 sq ft and is on a site with a remaining lease of 72 years. The developer who buys Horizon Towers will have to pay about $31 million to top up the lease to the original 99 years. Apparently, no development charge is payable. The $500 million reserve reflects $835 psf of potential gross floor area inclusive of the lease-upgrading premium and based on a 3.1 plot ratio (ratio of maximum potential gross floor area to land area), according to an earlier report.

A seasoned consultant said he was not surprised by the outcome for Horizon Towers as he considered it overpriced for its location, at Leonie Hill, given the leasehold tenure and the huge risk involved because of its big size.