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The mixed development property located at 1 Sophia Road is going for $650 million and has 232 commercial units, 86 apartments and a carpark.
The owners of Peace Centre and apartment complex Peace Mansion are making another attempt at a collective sale, with the reserve price set at $650 million, reported Channel News Asia (CNA) citing sole marketing agent JLL.
The owners had made several attempts at a collective sale, with the latest being in 2019.
Located at 1 Sophia Road, the mixed development property was built around 1977. It features 232 commercial units, 86 apartments as well as a 162-lot carpark or a total of 319 strata lots spread across a 10-storey front podium block and a 32-storey rear tower.
“At the minimum price of $650 million, it reflects a unit land rate after including an estimated lease top-up premium, is approximately $1,443 psf per plot ratio, before factoring in bonus balcony plot ratio for the residential component,” said Tan Hong Boon, Executive Director of JLL Singapore.
Under the 2019 Master Plan of the Urban Redevelopment Authority (URA), the 76,617 sq ft site is zoned “Commercial” with a verified gross plot ratio of 7.89.
JLL noted that the site may be redeveloped up to a height of 55m Singapore height datum, with a portion of the site potentially going as high as 67m.
“Based on a grant of outline planning permission from the URA in 2019, a developer may redevelop the site up to the existing gross floor area of approximately 604,578 sq ft for a mixed commercial and residential project with 60% commercial gross floor area and 40% residential gross floor area,” it said as quoted by CNA.
This means the site could yield around 362,747 sq ft of commercial space and about 241,831 sq ft of residential units – or around 240 units averaging 1,000 sq ft, subject to the approval of relevant authorities.
And since it is a commercial site, the buyer need not worry about paying Additional Buyer’s Stamp Duty (ABSD).
JLL revealed that it had secured in-principal approval from the Singapore Land Authority “to renew the lease to a fresh 99-year term” in March 2019.
“There is also no requirement for a pre-application feasibility study for the site based on enquiry with the Land Transport Authority,” it added.
Tan expects the development to attract strong interest.
“(Peace Centre and Peace Mansion), with its District 9 address, prominent corner site with a very high visibility of 100m frontage onto Sophia Road, 70m frontage onto Selegie Road and its proximity to six MRT stations within a 600m radius, stands out with its coveted location and excellent accessibility,” he said as quoted by CNA.
“We expect strong interest for this site due to the reasonable pricing and its potential mixed-use approval. With strong sales from mixed developments nearby such as The M and Midtown-Modern, we are expecting keen competition from developers to bid well in excess of the owners’ minimum price.”
The tender for Peace Centre/Peace Mansion closes on 19 October.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.
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