Peace Centre/Peace Mansion tries for en bloc again with S$650m reserve price

Vivienne Tay
Published Mon, Sep 6, 2021 · 12:15 PM

PEACE Centre/Peace Mansion (PCPM) has been put on the market for collective sale once again. This time, the owners are expecting offers in excess of S$650 million, sole marketing agent JLL said on Monday.

The minimum price of S$650 million reflects a unit land rate of about S$1,443 per square foot per plot ratio, after including an estimated lease top-up premium, but before factoring in bonus balcony plot ratio for the residential component. 

The property was previously launched for en bloc in March 2019 with a reserve price of S$688 million. The owners later received in-principle approval from the Singapore Land Authority for a lease top-up to 99 years in April 2019.

PCPM, which is located at 1 Sophia Road, was built around 1977. It comprises 232 commercial units, 86 apartments and a carpark with 162 lots, totalling 319 strata lots in a 10-storey front podium block and a rear 32-storey tower.

More than 80 per cent of the owners have consented to the collective sale, JLL said.

The 76,617 square-foot (sq ft) site the property sits on has a verified gross plot ratio of about 7.89 and may be redeveloped up to a height of 55 metres Singapore height datum, with part of the site potentially rising as high as 67 metres.

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Based on a grant of outline planning permission (OPP) from the Urban Redevelopment Authority (URA) in 2019, a developer may redevelop the site up to an existing gross floor area (GFA) of 604,578 sq ft with 60 per cent commercial GFA and 40 per cent residential GFA.

This means the site 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 the relevant authority's approval, JLL said.

PCPM is located near shopping amenities such as Bugis Junction, Bugis+, Plaza Singapura, The Cathay, Wilkie Edge and GR.ID. There are also six MRT stations within a one-kilometre distance - Rochor, Bencoolen, Dhoby Ghaut, Bras Basah, Little India and Bugis MRT stations.

The development is also near educational institutions such as Singapore Management University, Singapore School of the Arts, LASALLE College of the Arts, Nanyang Academy of Fine Arts and the Kaplan city campus.

Schools within a one-kilometre radius include St Margaret's Primary School and Stamford Primary School. Others within two kilometres of the site include Anglo-Chinese School (Junior), Farrer Park Primary School, River Valley Primary School and St Joseph's Institution Junior.

As the site is zoned for commercial use under URA's Master Plan 2019, there will be no additional buyer's stamp duty for its purchase. There is also no requirement for a pre-application feasibility study for the site based on enquiry with the Land Transport Authority.

JLL Singapore executive director Tan Hong Boon said that with the OPP and in-principle lease top-up approval in place, developers would have more clarity in evaluating and designing their products with certainty, hence allowing them to bid with confidence.

"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," he added. 

Owners of PCPM have been trying to sell the development since 2007 and engaged marketing agents Savills Singapore and Colliers in separate en bloc exercises to market the property. 

They were not able to get the 80 per cent approval needed for the potential collective sale in 2007, where owners were looking at an indicative price of S$470 million. The approval required was later achieved in February 2011 but with a higher asking price of S$700 million, according to Savills at the time. 

Owners took another stab at selling the property in July 2011 at S$675 million, and again in December 2014 at S$680 million. Owners were eyeing a reserve price of S$650 million in 2018 and later launched a S$688 million tender for the property in February 2019.

The latest tender for PCPM will close on Oct 19, 3pm. 

The Business Times reported in April that Peace Centre and Peace Mansion were among potential en bloc launches, although consultants were seeing "a mismatch in price expectations".


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