Peace Centre, Peace Mansions up for collective sale
Published March 28, 2007
Peace Centre, Peace Mansions up for collective sale
PEACE Centre and Peace Mansions in Sophia Road are for sale through an expression-of-interest exercise at an indicative price of $470 million, in what is one of Singapore's biggest mixed-development collective-sale offerings so far.
Steven Ming, director of investment sales at marketing agent Savills Singapore, said yesterday the indicative price for the 76,618 sq ft site translates to $880 per sq ft per plot ratio, including an estimated $82 million charge to reset the 37-year-old development's leasehold tenure to 99 years.
Mixed-development collective-sale sites transacted previously include Eng Cheong Towers, Kim Tian Plaza and, most recently, Kim Seng Plaza. Peace Centre/Peace Mansions, however, has the biggest price tag.
The development comprises a nine-storey commercial block and a 32-storey part-commercial, part-residential tower. There are 86 apartments, 137 offices, 95 shops and a car park.
Mr Ming says 70 per cent approval for a collective sale has already been achieved.
Subject to official approval, the site can be redeveloped up to its current gross floor area (GFA) of 627,852 sq ft, which happens to exceed the permissible plot ratio of 4.2.
A new, purely residential development is unlikely, says Mr Ming. More likely is a mixed development with a shopping mall, service apartments, medical or even an educational institution.
CapitaLand is developing a new shopping mall and service apartments nearby on the site of the former Selegie Complex.
Last year, Lend Lease Real Estate Investments bought the neighbouring Paradiz Centre for $138 million.
Selegie buildings go on the collective sale market
March 28, 2007
Selegie buildings go on the collective sale market
Indicative $470m price for Peace Centre, Peace Mansion plot totalling 76,618 sq ft
By Fiona Chan
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UP FOR GRABS: Peace Centre is a nine-storey block with shops and offices, while Peace Mansion is a commercial and residential tower. They sit on a 37-year-old plot at the corner of Sophia and Selegie roads.
THE owners of a mixed development site in the Selegie area have put their ageing buildings up for sale.
They are inviting expressions of interest for Peace Centre and the adjoining Peace Mansion, which sit on a 37-year-old plot at the corner of Sophia and Selegie roads.
Peace Centre is a nine-storey block with shops and offices, while Peace Mansion is a commercial and residential tower.
With a land area of 76,618 sq ft, they are the latest - and one of the biggest - strata-titled commercial blocks in Singapore to go for sale en bloc.
The two buildings have a total indicative price tag of $470 million, or $880 per sq ft per plot ratio.
This includes a estimated premium of $82 million to top up the 99-year leasehold tenure for the site.
A successful buyer could build a mall with about 627,852 sq ft of gross floor area, making it potentially the largest mall in the Selegie area, said Savills Singapore, which is marketing the site.
'It could be bigger than the Paradiz Centre, Parklane Shopping Centre, or the former Selegie Complex,' Savills said in a statement.
'There will be tremendous potential for expansion of the retail scene beyond the traditional Orchard Road belt and into the Selegie area.'
Parklane Shopping Centre next door is also said to be in talks about going for sale en bloc, while Selegie Complex across the road is being redeveloped by CapitaLand into offices, service apartments and shops.
The Peace Centre and Peace Mansion site could also be redeveloped into offices, said Savills.
A potential buyer may 'develop an office block to meet foreseeable increased demand in this sector as well', said Mr Steven Ming, director of investment at Savills.
Apart from malls or offices, the site could also be used for education, medical suites or even service apartments, Savills said.
But it added that these alternative uses are subject to approval from the relevant authorities.
The collective sale of Peace Centre and Peace Mansion comes on the heels of other strata-titled commercial buildings going up for sale.
Kim Seng Plaza was sold for $132 million last year, while Ming Arcade in Cuscaden Road held a tender in which the top bid was reported to be $61 million.
Generally, there is more interest among owners of strata-titled commercial buildings in going for sale en bloc now, said Mr Tan Hong Boon, executive director of property firm Credo Real Estate, which specialises in collective sales.
'They are looking at the land market, and how aggressively developers are bidding for sites nowadays, which makes them feel certain of good gains,' said Mr Tan.
But sales of strata-titled buildings, especially of malls in prime areas, remain relatively rare.
This could be because of problems with dividing out proceeds, Mr Tan suggested.
'It's easier for office buildings to go en bloc,' he said.
'For malls, the location of each individual unit is an issue, because they have different values based on which floor they are on and what frontage they have.'
The expressions of interest exercise for Peace Centre and Peace Mansion will close on May 23.
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