S$650mil Offered For Peace Centre/Peace Mansion
SINGAPORE – A local consortium announced on Friday that it has made a S$650 million offer for the Peace Centre/Peace Mansion complex via a private treaty, reported The Business Times on Friday (3 December, SGT).
The joint offerors comprise real estate player Chip Eng Seng, Ultra Infinity, and Sing-Haiyi Crystal. A KSH Holdings unit, SLB Development, and Ho Lee Group each own a 33 percent stake in Ultra Infinity. Sing-Haiyi Crystal is a joint venture (JV) equally owned by a SingHaiyi Group subsidiary and an entity controlled by Gordon Tang and Celine Tang, who are also the controlling shareholders of Chip Eng Seng.
As part of the deal, Chip Eng Seng, Sing-Haiyi Crystal, and Ultra Infinity will create a JV, wherein Chip Eng Seng will own a 40 percent stake, while the other two will each hold a 30 percent interest.
In September, the Peace Centre/Peace Mansion complex was launched for en bloc sale, with the owners anticipating offers of more than S$650 million. Jones Lang LaSalle (JLL) is the sole marketing agent. Previously, the owners hired Savills and Colliers in separate collective sale exercises to market the mixed-use commercial property.
The acquisition will require obtaining a sale order approving the collective sale, approval from the property’s lessor (government), and meeting planning criteria. The joint offerors will also require a fresh 99 years lease top up from the Singapore Land Authority (SLA) as it’s original 99 year lease had commenced in June 1970.
The Peace Centre/Peace Mansion complex consists of 319 strata units. The commercial property stands on a 7,118 sq m land that is presently zoned for commercial use.
According to JLL Executive Director Tan Hong Boon, based on the sale price of S$650 million, the unit land rate for the transaction translates to S$1,426 psf per plot ratio (ppr) after taking into account the lease top-up premium.
After including an additional 7 percent bonus gross floor area (GFA) for the residential component, the land rate works out to S$1,388 psf ppr.