SINGAPORE: Shopping mall Peace Centre and adjoining apartment complex Peace Mansion have been put up for collective sale at a reserve price of S$650 million, said sole marketing agent JLL on Monday (Sep 6).
More than 80 per cent of owners have consented to the sale, it added in a news release. They had made several en bloc sale attempts in the past, with one of them in 2019.
Built in around 1977, the mixed development property at 1 Sophia Road consists of 232 commercial units, 86 apartments and a 162-lot car park. This works out to a total of 319 strata lots in a 10-storey front podium block and a rear 32-storey tower.
"At the minimum price of $650 million, it reflects a unit land rate after including an estimated lease top-up premium, is approximately $1,443 psf per plot ratio, before factoring in bonus balcony plot ratio for the residential component,” said JLL Singapore executive director Tan Hong Boon.
The 76,617 sq ft site is zoned for commercial use under the Urban Redevelopment Authority’s (URA) 2019 Master Plan, and has a verified gross plot ratio of 7.89.
It may be redeveloped up to a height of 55m Singapore height datum, with part of the site potentially up to 67m, JLL said.
“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 of approximately 604,578 sq ft for a mixed commercial and residential project with 60 per cent commercial gross floor area and 40 per cent residential gross floor area,” it added.
“This could yield about 362,747 sq ft of commercial space and some 241,831 sq ft of residential units - or about 240 units at an average size of 1,000 sq ft, subject to relevant authority’s approval.”
As it is a commercial site, the buyer will not have to pay Additional Buyer's Stamp Duty.
“An in-principle approval to renew the lease to a fresh 99-year term was previously obtained from the Singapore Land Authority in March 2019,” JLL added.
“There is also no requirement for a pre-application feasibility study for the site based on enquiry with the Land Transport Authority.”
Mr Tan said that he expects strong interest for the development.
“(Peace Centre and Peace Mansion), with its District 9 address, prominent corner site with a very high visibility of 100m frontage onto Sophia Road, 70m frontage onto Selegie Road and its proximity to six MRT stations within a 600m radius, stands out with its coveted location and excellent accessibility,” he said.
“We expect strong interest for this site due to the reasonable pricing and its potential mixed-use approval. With strong sales from mixed developments nearby such as The M and Midtown-Modern, we are expecting keen competition from developers to bid well in excess of the owners’ minimum price.”
The tender exercise will close on Oct 19, 3pm.