Andy December 06 2021

0 0

Peace Centre and Peace Mansion sold for S$650m en bloc deal

The largest collective sale for this year goes to Peace Centre and Peace Mansion which was sold at S$650m.

A consortium of public listed companies acquired this Property by way of private treaty. 

Chip Eng Seng, SingHaiyi and Ultra Infinity (KSH, SLB Development and Ho Lee Group) form a joint venture to acquire this large site with a land size of 7,118 square metres.  

Peace Centre and Peace Mansion is a mixed development at District 9 comprising 319 strata units. 

It has a 99-year tenure starting from 2 June 1970. The Joint Offerors will seek in-principle approval from the Singapore Land Authority (SLA) to issue a fresh 99 years lease.

They plan to redevelop the Property into a mixed-use commercial and residential development whereby the commercial component will take up 60% of the total gross floor area (“GFA”).

Primary schools such as St. Margaret’s Primary School, St. Joseph’s Institution Junior and Anglo-Chinese School (Junior) are within a two-kilometre radius of the Property.

Singapore Management University (SMU), School of the Arts, Nanyang Academy of Fine Arts and LASALLE College of the Arts are within ten minutes walk from Peace Centre.

Its prime location allows easy accessibility to other parts of Singapore via major roads and expressways such as the Central Expressway (CTE) and East Coast Parkway (ECP), with Raffles Place and Marina Bay being within 10 minutes’ drive away and the Plaza Singapura within walking distance.

Route to en bloc for Peace Centre

In 2007, the owners were unable to get the 80 per cent approval needed for the potential collective sale as the indicative price of S$470 million was deemed to be too low.

In 2011, although the approval required was achieved, the higher asking price of S$700 million was unrealistic.

In 2014, the marketing agent tried to sell at S$680 million but without success.

In 2018, they targeted a reserve price of S$650 million, still no takers. 

Peace Centre engaged Savills Singapore and Colliers in separate en bloc exercises to market the property in the past but it was unsuccessful.

According to JLL who is the sole marketing agent for Peace Centre, based on the sale price of S$650 million, the unit land rate for the deal is S$1,426 per square foot per plot ratio (psf ppr), after including an estimated lease top-up premium. If we take into consideration an additional 7 per cent bonus gross floor area (GFA) for the residential component, the land rate is S$1,388 psf ppr. 

The chairman of Peace Centre’s collective sale committee, Mohamed Rafig Maideen, said that perseverance is key to success and they are delighted to secure a buyer on their fifth attempt.

Windfall in Peace Centre En Bloc

In May 2021, there was a sale transaction for a 2604 sqft unit on a high floor which was sold for $1.74 million.

Although this owner is liable to pay IRAS a seller stamp duty (SSD) of 12% for selling the property within a year of purchase, this owner will still make a handsome profit of approximately $1.6 million.

Check the past private property transactions of Peace Centre / Peace Mansion.