Located along Sophia Road, Peace Centre and Peace Mansion occupy a 76,617 sq ft site. Source: Google Maps
After five tries at a collective sale, the shopping mall Peace Centre and apartment complex Peace Mansion have finally been sold for $650 million to a joint venture comprising Sing Haiyi Crystal, CEL Development and Ultra Infinity, reported Channel News Asia (CNA) citing sole marketing agent JLL.
Built around 1977, the mixed development at Sophia Road comprises 232 commercial units, 86 apartment units and a 162-lot car park or a total of 319 strata units within a 10-storey front podium block as well as a rear 32-storey tower.
It occupies a 76,617 sq ft site that is zoned for commercial use under the 2019 Master Plan, with a verified gross plot ratio of 7.89.
In March 2019, in-principle approval from the Singapore Land Authority was obtained to renew the site’s lease to a fresh 99-year term.
“Based on a grant of outline planning permission from the URA in 2019, a developer may redevelop the site up to the existing gross floor area (GFA) of approximately 604,578 sq ft for a mixed commercial and residential project with 60% commercial gross floor area and 40% residential gross floor area,” said JLL as quoted by CNA.
Meanwhile, Mohamed Rafig Maideen, current collective sale chairman, said the owners were more realistic during this round, with the sale agreement concluded following “intense negotiations on the terms of the contract”.
Notably, over 80% of the owners consented to the sale of the development.
“We have been persistent over the years and never gave up,” he said as quoted by CNA. “We have finally come to this stage and successfully found a buyer on our fifth attempt.”
JLL Executive Director Tan Hong Boon said the buyer can develop a well-connected mixed-use development at the site given its “excellent accessibility” to six MRT stations and central location.
At $650 million and based on a new development comprising 60% commercial and 40% residential, the unit land rate stands at about $1,426 per sq ft per plot ratio (psf ppr) including the estimated lease top-up premium or $1,388 psf ppr after factoring in an additional 7% bonus GFA for the residential component, he added.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.
