http://www.businesstimes.com.sg/spec...rties-cbd-sale

Published May 31, 2012

2 commercial properties in the CBD up for sale

90 Peace Centre/Peace Mansion units going for $200m; indicative price for 700 Beach is $120m

By jasmine ng


[SINGAPORE] Two commercial properties within the central business district have been put up for sale by expressions of interest yesterday.

Colliers International has put a total of 90 retail and office strata-titled units at Peace Centre/Peace Mansion on the market. The property consultant is seeking a joint venture partner or partners to co-own and manage the units.

To form the joint venture partnership, Colliers will sell partial equity stakes in the investment holding company.

The total strata area of these units - including 11 residential units - amounts to some 283,908 square feet, and represents about 46 per cent of the total share value of the development.

Colliers executive director of investment services Tang Wei Leng says that the investment value for the 46 per cent stake is about $200 million.

The development comprises Peace Centre, a part-seven and part-10-storey commercial podium block; and Peace Mansion, a 32-storey residential tower comprising 84 apartments and two penthouses. It is sitting on a 76,617 sq ft site and has about 57 years of lease remaining.

Ms Tang believes that Peace Centre/Peace Mansion has an advantageous location given its proximity to the central business district and Orchard Road shopping belt.

There is also redevelopment potential for Peace Centre/Peace Mansion. "Subject to the relevant authorities' approval, it can be redeveloped to the maximum of its current gross floor area/baseline record of 627,852 sq ft, exceeding the permissible plot ratio of 4.2 under the Master Plan 2008," she says.

The office and retail units offered for sale have an occupancy rate of over 90 per cent. The 11 residential units are 84 per cent leased. The invitation to submit an offer for the strata-titled property will close at noon on June 28.

The second property put on the block is a 100 per cent strata interest in 700 Beach, an eight-storey office building located in Beach Road.

Jones Lang LaSalle is seeking expressions of interest for the 67,429 sq ft of strata area, which is currently fully occupied. Within walking distance of the Nicoll Highway MRT station, the property comes with an indicative price tag of $120 million.

"With the growing number of large scale developments in the vicinity including South Beach, Ophir-Rochor site and the Sports Hub, we expect there will be strong interest from owner occupiers, investors and hotel owners," says Jones Lang head of investments, South-east Asia, Ashish Manchharam.

The property sits on a commercial-zoned site of 18,400 sq ft and existing plot ratio of 4.2, held in 55 strata title units and has obtained provisional outline planning permission for conversion to hotel use.

Tom Oakden, vice-president of Jones Lang LaSalle Hotels, says that the property provides the owner with the opportunity to convert it into a 200-room hotel.

The expression of interest for 700 Beach will close at 3pm on July 5.