Ravi Chandran
The tender closing date for the collective sale of Peace Centre/ Peace Mansion (“PCPM”) has been extended to 3 May 2019 (Friday), 3.00 p.m.
The prime District 9 property, Peace Centre/ Peace Mansion, was launched for sale by tender in late February with the tender closing date originally scheduled for 11 April 2019.
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“The owners are still waiting for the relevant authorities’ reply to their application for an In-principle Approval for the lease top-up to a fresh 99 years. The reply is expected to be any time soon but the schedule has fallen slightly behind owners’ expectation. The decision to extend the tender was made also following feedback from several developers that they would need more time, as they are preparing for or evaluating the few Government Land Sale sites currently up for tender in the market.” says Mr. Tan Hong Boon, Executive Director at JLL.
In view of the above, the Collective Sale Committee, in consultation with JLL and their lawyers, Lee & Lee, have made the decision to extend the tender closing date for an additional 3 weeks in order to ensure sufficient time is given to the developers for evaluations and decisions.
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Peace Centre/ Peace Mansion enjoys unparalleled location and physical attributes, possessing all the ingredients needed for a mixed development with superb accessibility. Within a 600-metre radius of the site, there are six MRT stations; namely Rochor, Bencoolen, Dhoby Ghaut, Bras Basah, Little India and Bugis that are mostly within walking distance of 500 to 700 metres from Peace Centre/ Peace Mansion.
Zoned “Commercial” in the prevailing Master Plan, an outline planning permission (“OPP”) from the Urban Redevelopment Authority has been obtained recently for it to be redeveloped up to the existing Gross Floor Area (“GFA”) of approximately 604,578 sq ft at an equivalent Gross Plot Ratio of 7.89 for a mixed commercial (60% GFA) and residential (40% GFA) project. Based on the OPP, a new development on PCPM site could yield about 362,747 sq ft of retail/commercial space and some 241,831 sq ft of residential units.
At the owners’ minimum price of $688 million, it reflects a land rate of approximately $1,474 psf per plot ratio, before factoring in bonus balcony GFA for the residential component. With the OPP and assuming the lease top up for up to 99 years is in place.
Peace Centre/ Peace Mansion is an attractive value proposition for developers looking for a prime commercial development project in the city. The tender for Peace Centre/ Peace Mansion closes on Friday, 3 May 2019, at 3.00 p.m.
Chief Mortgage Consultant at iCompareLoan Paul Ho said it is good that the tender closing date has been extended as Peace Centre/ Peace Mansion should not sell off the mixed-development for a song. He added: “Owners must hold out for a good price.”
Indeed Peace Mansion and the adjoining Peace Centre should consider holding out for a good offer because they are located in a prominent area which deserves a premium. The mixed development is prominently located at the junction of Selegie Road and Sophia Road, 1 Sophia Road enjoys a wide double frontage of approximately 175m. If redeveloped the property may be the largest among the malls located along the streetscape comprising of POMO, Parklane Shopping Centre and Wilkie Edge.
4 MRT Stations – Dhoby Ghaut Interchange, Little India Interchange and Bugis MRT Stations as well as the upcoming Rochor MRT Station, serving 4 MRT networks – North-South Line, North-East Line, Circle Line and the upcoming Downtown Line, are all located within a 600 metre radius from the site.
Situated immediately next to the Civic District, 1 Sophia Road is within minutes walk from various leading educational institutions such as, SOTA (School of the Arts), Singapore Management University, LASALLE College of the Arts and the Nanyang Academy of Fine Arts etc. The National Museum and the Singapore Art Museum is similarly within minutes walk from the site. Furthermore the site has a captive market of residents from nearby prime residential projects such as Parc Emily, 8 @ Mt Sophia, The Cathay Residence, Sophia Residences and Suites @ Orchard.
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A stone’s throw from the renowned Orchard Road, the prime mixed development site is located within the Bras Basah-Bugis district, which is Singapore’s arts, civic, cultural, heritage, design and education precinct, home to the greatest concentration of museums, historic monuments, heritage buildings, places of worship, arts groups, arts schools, educational institutions and lifestyle malls in the city centre.
Established shopping amenities, popular eateries and hip cafes are readily accessible within the Bras Basah-Bugis district. Bugis Junction, Plaza Singapura, The Cathay and PoMo are all located within walking distance to PCPM. The popular Bugis Village is also in close proximity.
The vibrant dynamics of the locale will propel demand for the commercial and residential space in the new project. Retail demand is strongly supported by tourists, students of nearby educational institutions, as well as residents of nearby upscale private housings in the established Mount Sophia, while residential demand is enhanced by the high income demographics and excellent connectivity of the area just off Orchard Road and Bras Basah Road.
If you are hunting for mixed-developments to invest in, our Panel of Property agents and the mortgage consultants at icompareloan.com can help you with affordability assessment and a promotional home loan.
The services of our mortgage loan experts are free. Our analysis will give best home loan seekers better ease of mind on interest rate volatility and repayments.
Just email our chief mortgage consultant, Paul Ho, with your name, email and phone number at paul@icompareloan.com for a free assessment.
