Peace Centre/Peace Mansion makes 5th stab at collective sale with $688m reserve price

Peace Centre/Peace Mansion sits on a 76,617 square feet site, with a gross floor area of slightly over 600,000 sq ft.
Dated: 25-Feb-2019

SINGAPORE - The owners of Peace Centre/Peace Mansion have put the prime mixed development site at 1 Sophia Road up for tender again with a reserve price of $688 million, or about $1, 474 per square foot per plot ratio (psf ppr).

Peace Centre/ Peace Mansion (PCPM) sits on a 76, 617 square feet site, with a gross floor area of slightly over 600, 000 sq ft. The property has 32 floors, with Peace Centre being a part-seven, part-10-storey commercial podium block, and Peace Mansion, a 22-storey residential tower with 84 apartments and two penthouses.

This is the owners' fifth attempt at a collective sale. In June 2018, they were said to be eyeing a reserve price of $650 million.

Under the Urban Redevelopment Authority's (URA) 2014 Master Plan, PCPM's site is zoned for commercial use. It has a verified gross plot ratio (GPR) of about 7.89 and may be redeveloped up to a height of 55 metres above mean sea level, said sole maketing agent JLL.

An outline planning permission (OPP) from the URA was obtained recently for a developer to redevelop the site up to the existing GFA of about 604, 578 sq ft at an equivalent GPR of 7.89 for a mixed commercial and residential project, JLL said.

Based on the OPP, a new development comprising 60 per cent commercial GFA and 40 per cent residential GFA could yield about 362, 747 sq ft of retail/commercial space, and some 241, 831 sq ft of residential units, JLL said.

An application for an in-principle approval for the lease top-up to a fresh 99 years has also been made to the Singapore Land Authority and a reply is expected to be obtained soon.

JLL executive director Tan Hong Boon said: "We expect strong interest for this site due to the reasonable pricing and its mixed-use approval. At the owners' minimum price of $688 million, it reflects a land rate of approximately $1, 474 psf per plot ratio, before factoring in bonus balcony plot ratio for the residential component."

The tender closes on April 11 at 3pm.

Source: Straits Times