Peace Centre and Peace Mansion sold in $650 million collective sale to Chip Eng Seng, SingHaiyi, KSH joint venture

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/ EdgeProp Singapore
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December 3, 2021 11:03 AM SGT
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SINGAPORE (EDGEPROP) - Peace Centre and Peace Mansion, two properties that sit on a single commercial site at 1 Sophia Road have been sold for $650 million in a collective sale to a joint venture (JV) comprising CEL Development, SingHaiyi Crystal, and Ultra Infinity, announced JLL the sole marketing agent.
SingHaiyi Crystal is a 50-50 JV between SingHaiyi Realty, SingHaiyi’s wholly-owned subsidiary and Haiyi Properties. CEL Development is a wholly-owned subsidiary of Chip Eng Seng Corporation. Ultra Infinity is a 33.3%-owned associated company of KSH Holdings. The other shareholders in Ultra Infinity are SLB Development and Ho Lee Group holding respective stakes of 33.33% each.
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In total, Peace Centre and Peace Mansion consist of 232 commercial units, 86 apartment units, and a carpark with 162 lots. Based on the sale price, the land rate translates to about $1,426 psf per plot ratio (ppr) after including a lease top up premium, or $1,388 psf ppr after factoring in an additional 7% bonus gross floor area for the residential component.
“We have been persistent over the years and never gave up. We have finally come to this stage and successfully found a buyer on our fifth attempt. The owners are more realistic this round and with the excellent advice and hard work from the agents, JLL and the lawyers, Lee& Lee, we eventually concluded the sale agreement after intense negotiations on the terms of the contract,” says Mohamed Rafig Maideen, chairman of the collective sales committee.
More than 80% of the owners gave their consent to proceed with the launch of the collective sale tender on Sept 7 this year. An accompanying press release from JLL stated that the owners were expecting offers of more than $650 million for the entire commercial site. (Find Singapore commercial properties with our commercial directory)
The development occupies a prominent corner site with a 100m frontage along Sophia Road and 70m frontage along Selegie Road. The development is within 1km from St Margaret’s Primary School, while Anglo-Chinese School (Junior), Farrer Park Primary School, River Valley Primary School and St Joseph’s Institution Junior are within 2km of the site.
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Other nearby educational institutes include Singapore Management University, Singapore School of the Arts, LASALLE College of the Arts, Nanyang Academy of Fine Arts and the Kaplan city campus.
“With its coveted central location in the Orchard, Bras Basah and Mount Sophia locale and excellent accessibility to six MRT stations within a 600m-radius from the site, the purchaser will be able to develop a well-connected mixed-use development in this ever evolving and growing locale,” says Tan Hong Boon, executive director at JLL.
The site also received an Outline Planning Permission (OPP) from URA in 2019 that allows a developer to redevelop the site into a new mixed-use commercial and residential development. Under that OPP, the residential component would take up 40% of the gross floor area, which translates to about 240 units with an average size of 1,000 sq ft.
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