Peace Centre / Peace Mansion up for collective sale at $688m

It could yield about 362,747 sqft of retail/commercial space and some 241,831 sqft of residential units.

Peace Centre / Peace Mansion (PCPM) in Sophia Road is up for sale at $688m, JLL revealed. The mixed development commercial site located in the prime district 9 houses 99 retail/commercial units, 133 offices, 86 apartments and a carpark with 162 lots, totalling 319 strata lots in a 10-storey front podium block and a rear 32-storey tower.

Under the 2014 Master Plan, the property has a site area of 76,617 sqft site is zoned for ‘commercial’ use and has a verified gross plot ratio (GPR) of about 7.89. The property could also be redeveloped up to a height of 55 m above mean sea level.

An outline planning permission (“OPP”) from the Urban Redevelopment Authority has been obtained recently to redevelop the site up to the existing Gross Floor Area (“GFA”) of approximately 604,578 sq ft at an equivalent GPR of 7.89 for a mixed commercial and residential project. Based on the OPP, a new development comprising of 60% commercial GFA and 40% residential GFA could yield about 362,747 sqft of retail/commercial space and some 241,831 sqft of residential units (or about 240 units at an average size of 1,000 sqft, subject to relevant authority’s approval).

According to JLL, more than 80% of the owners have consented to the collective sale and are expecting offers in excess of $688 million.

An application for an in-principle approval for the lease top up to a fresh 99 years has also been made to the Singapore Land Authority and a reply is expected to be obtained soon. JLL noted that there is also no requirement for a Pre-Application Feasibility Study for the site based on enquiry with the Land Transport Authority (LTA).

“At the owners’ minimum price of $688m, it reflects a land rate of approximately $1,474 psf ppr, before factoring in bonus balcony plot ratio for the residential component,” Tan Hong Boon, Executive Director at JLL, said. “This compares very favorably with transacted land sales in the vicinity as well as several other commercial and mixed use collective sale sites on the market now.”