Peace Centre, Peace Mansion sold for S$650 million on fifth attempt

Peace Centre, a shopping mall, and Peace Mansion, an adjacent apartment complex, have been sold after a fifth attempt at a collective sale, according to exclusive marketing agent JLL (Dec 3).

CEL Development, Sing-Haiyi Crystal, and Ultra Infinity formed a joint venture to purchase the mixed-use property on Sophia Road for S$650 million. The reserve price for the collective sale was established at S$650 million.

More over 80% of the property’s owners agreed to sell the house, which was built in 1977. It has 232 business units, 86 residences, and a 162-space parking garage. This translates to 319 strata units in a 10-story front podium block and a 32-story tower at the back.

Under the Urban Redevelopment Authority’s (URA) 2019 Master Plan, the 76,617 sq ft site is zoned for commercial use and has a validated gross plot ratio of 7.89.

In March 2019, the Singapore Land Authority gave its in-principle approval to renew the site’s lease for a new 99-year term. It might be redeveloped up to a height of 55 meters on the Singapore height datum, with a portion of the property potentially reaching a height of 67 meters.“

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,” JLL said in a news release.

Mr Mohamed Rafig Maideen, the current chairman for the collective sale, said that “the owners are more realistic this round”, and that the sale agreement was concluded after “intense negotiations on the terms of the contract”.

“We have been persistent over the years and never gave up,” he said. “We have finally come to this stage and successfully found a buyer on our fifth attempt.”

With the site’s central location and “excellent accessibility” to six MRT stations, “the purchaser will be able to develop a well-connected mixed-use development”, said JLL executive director Tan Hong Boon.

“At the sale price of S$650 million, based on a new development comprising 60 per cent commercial and 40 per cent residential quantum, the … unit land rate after including an estimated lease top-up premium is approximately S$1,426 per sq ft per plot ratio, or S$1,388 per sq ft per plot ratio after factoring in an additional 7 per cent bonus gross floor area for the residential component.”

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