SINGAPORE (EDGEPROP) - Peace Centre and Peace Mansion, two properties that sit on a single commercial site at 1 Sophia Road, launched a collective sale tender on September 6. The collective sale committee has appointed JLL as the sole marketing agent.

Read also: Peace Centre/Peace Mansion collective sale extended to May 3

The development is on a prominent corner site with very high visibility from its 100m frontage along Sophia Road and 70m frontage along Selegie Road. It also boasts a District 9 address and proximity to six MRT stations.

In total, both developments consist of 232 commercial units, 86 apartment units, and a carpark with 162 lots. More than 80% of the owners have given their consent, and according to a press release from JLL, the owners are expecting offers of more than $650 million for the entire commercial site.

At the minimum price of $650 million, it reflects a land rate after including an estimated lease top-up premium, of about $1,443 psf per plot ratio. This is before factoring in the bonus balcony plot ratio for the residential component.

Peace Centre and Peace Mansion were completed in 1977, and under the 2019 Master Plan the 76,617 sq ft site is zoned for ‘Commercial’ use with a gross plot ratio of 7.89. (See: Find Singapore commercial properties with our commercial directory)

The site received an Outline Planning Permission (OPP) from the URA in 2019 that could have allowed a developer to rebuild the site into a mixed use commercial and residential project with a total gross floor area of 604,578 sq ft. The residential component would take up 40% or 241,831 sq ft, which translates to about 240 units based on an average size of 1,000 sq ft.

No ABSD is applicable for the purchase of the site. An in-principal approval to renew the 99-year leasehold tenure was previously obtained in March 2019. There is also no requirement for a Pre-Application Feasibility Study, says JLL.

“With the OPP and the in-principle lease top-up approval in place previously, developers would have more clarity in evaluating and designing their products with certainty, which will result in them bidding with confidence,” says Tan Hong Boon, executive director, JLL Singapore.

He expects strong interest in the collective sale due to the reasonable pricing and the site’s redevelopment potential as a new mixed-use development.

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