Peace Centre/Mansion make third en bloc attempt

Singapore

PEACE Centre/Peace Mansion, a residential-commercial mixed development along 1 Sophia Road in the prime District 9, has been put up for collective sale by tender for the third time, following two earlier failed attempts.

The indicative price is about S$680 million, which works out to S$1,125 per square foot per plot ratio (psf ppr). This price is calculated with neither a differential premium nor topping-up of lease.

The property sits on a 76,617 sq ft site which has about 54.5 years left on its original 99-year leasehold tenure.

It has 32 floors in all: Peace Centre is a part-seven, part-ten-storey commercial podium block, while Peace Mansion is a 22-storey residential tower with 84 apartments and two penthouses.

Nearby commercial buildings include PoMo, Parklane Shopping Centre and Wilkie Edge. Considered to be located at the fringe of Orchard Road, it is also near the National Museum of Singapore, Singapore Art Museum, School of the Arts and Singapore Management University.

Stella Hoh, executive director of investment services at Colliers, which launched the tender, said, "Based on our recent baseline enquiry (with the Urban Redevelopment Authority, URA) and outline application results, the successful buyer can potentially redevelop the property into a mixed-use development comprising office, retail, residential or serviced apartment units, with an allowable gross floor area of some 604,578 sq ft."

This would be equivalent to a plot ratio of 7.89. Under URA's Master Plan 2014, the site is zoned for commercial use with a 4.2 plot ratio, but a higher plot ratio has been approved for this building because it was already built to a higher level before the Master Plan came into effect.

Ms Hoh also told BT that if the developer decides to build 60 per cent commercial and 40 per cent residential, there will be no differential premium payable.

"Colliers will leave it to the developer to decide if there is a need to apply for the lease top-up levy - given that different developers will have different objectives. Some developers will prefer a lower cost base and build for rental yield, while other developers may want to top up the lease for strata sale," she said, although the latter case would be more likely.

"Alternatively, the new owner can consider refurbishment and reconfiguration. Subject to relevant authorities' approval, Peace Centre can be refurbished into a modern shopping mall, while Peace Mansion can be converted to accommodate serviced apartments - all these while retaining the existing height of the building, which is currently the tallest in the vicinity."

The tender will close on Feb 11, 2015 at 2.30 pm.