SINGAPORE – A group involving several Singapore-listed companies has made a successful $650 million offer for Peace Centre/Peace Mansion in a private treaty deal following the close of its collective sale tender earlier this year, the companies announced on Friday (Dec 3).
The group comprises Chip Eng Seng, a SingHaiyi joint venture and Ultra Infinity, which is equally owned by a unit of KSH Holdings, SLB Development and Ho Lee Group.
The SingHaiyi joint venture, Sing-Haiyi Crystal, is 50/50 held by a SingHaiyi Group subsidiary and an entity controlled by Mr Gordon Tang and Ms Celine Tang, who are also Chip Eng Seng’s controlling shareholders.
Peace Centre/Peace Mansion made its sixth attempt at a collective sale in September this year, with the owners expecting offers in excess of $650 million.
Located at 1 Sophia Road, the District 9 property was built around 1977. It comprises 232 commercial units, 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.
The site currently has a 99-year tenure starting from June 2, 1970. The joint offerors will seek in-principle approval from the Singapore Land Authority to issue a fresh 99-year lease.
They will also seek approval from the Urban Redevelopment Authority to redevelop the property into a mixed-use commercial and residential development. The site, which spans 7,118 sq m, is currently zoned “commercial”.
Chip Eng Seng, Sing-Haiyi Crystal and Ultra Infinity will form a joint venture for the property’s acquisition and redevelopment. Chip Eng Seng will hold the largest stake at 40 per cent, with the two partners taking 30 per cent each.
The acquisition is subject, among others, to the joint offerors obtaining a sale order approving the collective sale, meeting planning criteria and getting the lease topped up.
Peace Centre/Peace Mansion is near shopping amenities such as Bugis Junction, Bugis+, Plaza Singapura, The Cathay, Wilkie Edge and GR.iD. There are also six MRT stations within 1km distance – Rochor, Bencoolen, Dhoby Ghaut, Bras Basah, Little India and Bugis.
The development is also near educational institutions such as Singapore Management University, the School of the Arts, Lasalle College of the Arts, Nanyang Academy of Fine Arts and Kaplan City Campus.
Schools within a 1km radius include St Margaret’s Primary School and Stamford Primary School. Others within 2km of the site include Anglo-Chinese School (Junior), Farrer Park Primary School, River Valley Primary School and St Joseph’s Institution Junior.