Peace Centre enbloc on 5th attempt

Peace Centre Aerial View

Former Peace Centre

Shopping mall Peace Centre and the adjoining apartment complex, Peace Mansion, have finally changed hands after an arduous fifth attempt at a collective sale. The exclusive marketing agent, JLL, confirmed the sale on Friday, December 3rd.

Located at 1 Sophia Road in District 9, this mixed development property fetched a substantial sum of S$650 million. The joint venture behind this acquisition consists of CEL Development, Sing-Haiyi Crystal, and Ultra Infinity. Notably, this sale matches the reserve price initially set for the collective sale.

A significant majority of owners, exceeding 80%, have agreed to part with this property, originally constructed in 1977. Comprising 232 commercial units, 86 apartments, and a 162-lot car park, the complex encompasses a total of 319 strata units, featuring a 10-storey front podium block and a rear 32-storey tower.

Peace Centre Aerial View

This 76,617 square feet site has been zoned for commercial use according to the Urban Redevelopment Authority’s (URA) 2019 Master Plan. It boasts a verified gross plot ratio of 7.89. In March 2019, in-principle approval was granted to extend the site’s lease for a fresh 99-year term by the Singapore Land Authority. This extension permits potential redevelopment to a height of up to 55m above the Singapore height datum, with certain parts of the site possibly reaching up to 67m.

JLL shared, “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 GFA and 40% residential GFA.”

Mohamed Rafig Maideen, the current chairman overseeing the collective sale, expressed optimism, stating, “The owners are more realistic this round,” and noted that the sale agreement was reached after “intense negotiations on the terms of the contract.”

Benefiting from its central location and “excellent accessibility” to six MRT stations, JLL’s executive director, Tan Hong Boon, emphasized that the purchaser could develop a well-connected mixed-use development. At the sale price of S$650 million and considering a new development consisting of 60 per cent commercial and 40 per cent residential quantum, the unit land rate, including an estimated lease top-up premium, stands at approximately S$1,426 per sq ft per plot ratio, or S$1,388 per sq ft per plot ratio after factoring in an additional 7 per cent bonus gross floor area for the residential component.