Peace Centre Attempts Another En Bloc Sale
SINGAPORE – Marketing agent Jones Lang LaSalle (JLL) announced that the Peace Centre/Peace Mansion complex has been launched for collective sale, with unit owners expecting offers of more than S$650 million, reported The Business Times on Monday noon (6 September, SGT).
The development along 1 Sophia Road was previously put up for en bloc sale in March 2019 at a reserve price of S$688 million. Then in the following month, it obtained in-principle approval from the Singapore Land Authority (SLA) to refresh the lease to 99 years.
Constructed in 1977, the mixed-use project consists of 232 commercial units, 86 residential units, and a carpark that can accommodate 162 vehicles.
Overall, it has 319 strata lots spread across a 10-level podium block at the front and a 32-storey tower at the back. JLL revealed that over 80 percent of the strata unit owners have signed the collective sale agreement.
Standing on a 76,617 sq ft land plot, the Peace Centre/Peace Mansion complex has a confirmed gross plot ratio of about 7.89. Hence, it can be redeveloped up to a height of 55m, with some parts of the new development rising up to 67m.
According to the Urban Redevelopment Authority’s (URA) outline planning permission (OPP) for the development in 2019, the buyer may redevelop the project up to a gross floor area (GFA) of 604,578 sq ft. Of this 40 percent is intended for residential use, while 60 percent is for commercial usage.
As such, the project can generate roughly 362,747 sq ft of commercial space and around 241,831 sq ft of residential premises or about 240 residential units averaging 1,000 sq ft, subject to obtaining approval from the relevant government agencies.
“With the OPP and the in-principle lease top-up approval in place previously, developers would have more clarity in evaluating and designing their products with certainty, which will result in them bidding with confidence,” commented Tan Hong Boon, Executive Director at JLL Singapore.
Given that the site is intended for commercial use, no additional buyer’s stamp duty (ABSD) is payable for the transaction. The Land Transport Authority also said that there’s no need for a pre-application feasibility study for the site.