Peace Centre complex is up for en bloc sale again

[mr funny]

http://www.businesstimes.com.sg/sub/suite/story/0,4574,425424,00.html?

Published February 10, 2011

Peace Centre complex is up for en bloc sale again

Asking price for the site now higher than in 2007, when it was last put up for sale

By UMA SHANKARI


THE landmark Peace Centre and Peace Mansion complex at the Selegie Road-Sophia Road junction is up for collective sale once again.

http://www.businesstimes.com.sg/mnt/media/image/launched/2011-02-10/BT_IMAGES_UMPROP10.jpg
Building potential: The Peace Centre and Peace Mansion complex, which comprises a seven-storey commercial podium and a 32-storey residential tower, can be redeveloped into a building with a GFA of up to 627,900 sq ft

The now 40-year-old property was last put up for sale in 2007 through an expression-of-interest exercise with an indicative price of $470 million - or $880 per square foot per plot ratio (psf ppr), including an estimated $82 million charge to top up the tenure to 99 years.

But the asking price was not met, BT understands. Savills Singapore, which marketed the property, also did not manage to get the needed 80 per cent approval for a collective sale.

This time, the 80 per cent approval rate has been met, Savills said.

But the asking price is higher. Owners are now looking for $700 million. This works out to $1,355 psf ppr, including an estimated $150 million upgrading premium to top up the lease to 99 years.

The District 9 commercial site has a land area of about 76,600 sq ft.

The property currently comprises a seven-storey commercial podium and a 32-storey residential tower.

Subject to approval from the relevant authorities, the site can be redeveloped into a building with a gross floor area of up to 627,900 sq ft.

This is the current gross floor area, which exceeds the permissible plot ratio of 4.2 stipulated in the 2008 Master Plan.

Suzie Mok, director of investment sales at Savills Singapore, expects the site to be suitable for a new mall.

'With the successful rejuvenation of the Civic District and the expected continued strength in the local and regional economies, there will be tremendous potential for expansion of the retail scene beyond the main tourist and shopping belt of Orchard Road into the Selegie Road area,' she said.

Other than for retail, alternative uses for the site may include medical suites, offices, small office, home office (Soho) units or even service apartments, subject to approval.

The tender for the site will close on April 20.

[mr funny]

http://www.straitstimes.com/Money/Story/STIStory_633207.html

Feb 10, 2011

Peace Centre site back on sale at $700m

By Esther Teo, Property Reporter

http://www.straitstimes.com/STI/STIMEDIA/image/20110209/ST10-HOM-021-ETPEACE.jpg
The price tag translates to $1,355 per sq ft per plot ratio, including an estimated $150 million charge to reset the 40-year-old development's leasehold tenure to 99 years. -- PHOTO: SAVILLS

IT IS round two for the owners of Peace Centre and Peace Mansion, who are making a second attempt to sell their Sophia Road commercial redevelopment site.

This time they are going for collective sale tender with a hefty guide price of $700 million. That works out to $1,355 per sq ft per plot ratio - inclusive of an estimated $150 million charge to reset the 40-year-old development's leasehold tenure to 99 years, marketing agent Savills Singapore said yesterday.

The asking price is also significantly higher than the $470 million indicative price when it was first put up for sale, through an expression of interest exercise in March 2007.

The prime District 9 site - zoned for commercial use under the 2008 Masterplan - sits on a 76,618 sq ft plot and consists of a seven-storey commercial podium with 232 office and retail units, and a 32-storey residential tower with 86 apartments.

The site has a gross floor area of about 627,852 sq ft.

Savills said that besides being used for retail, alternative uses may include medical suites, offices, Soho - small office, home office - or even serviced apartments.

Apartment owners are expected to pocket about $2 million, if the guide price is met, said Savills' director of investment sales Suzie Mok.

She said that with the successful rejuvenation of the Civic District and the expected ongoing strength in the local and regional economies, there is tremendous potential for expansion of the retail scene beyond the main tourist and shopping belt of Orchard Road and into the nearby Selegie Road area.

Ms Mok also said the higher asking price compared to 2007 resulted from price trends moving up 'a fair bit' and rejuvenation of the area.

'Many plans have taken place with the whole area seeing transformation since 2007,' she added.

Experts said that while the guide price is optimistic, its central location and commercial zoning might be attractive to developers looking beyond the residential market.

Cushman & Wakefield's senior manager of Asia-Pacific research, Mr Ong Kah Seng, said although market sentiment is generally more cautious, there are still opportunities for sites in good locations.

'This site is fairly central, and enjoys proximity to Orchard Road and various educational institutions,' he said.

Nearby, the former Paradiz Centre in Selegie Road - now called PoMo - also launched an expression of interest exercise in December.

While no price has been specified, a price guide of about about $1,400 psf based on the net lettable area, or $255 million, was given.