2012-05-30

Owner is seeking Joint venture partner(s) by selling partial equity stakes.

International property consultant, Colliers International is inviting interested parties to embark on a joint venture – by Expression of Interest – to co-own and manage various strata-titled units in Peace Centre/Peace Mansion, which is located at 1 Sophia Road.

Interested parties are invited to submit their offer to Colliers International by 28 June 2012, at 12.00 pm.

Sitting on a 76,617 sq ft site which has a 99-year (w.e.f. 2 June 1970) tenure, the development comprises Peace Centre, a part-seven-and-part-ten-storey commercial podium block; and Peace Mansion, a 32-storey residential tower comprising 84 apartments and two penthouses.

For sale are 90 retail and office strata-titled units – including a ground-floor food court, 11 residential units and 162 car park lots. They represent approximately 46 per cent of the total share value of the development. Meanwhile, total strata area of these units is some 283,908 sq ft1.

The owner is seeking joint venture partner(s) who would take over the asset management services to enhance the value of the property – through active lease management, tenant-mix repositioning and/or asset enhancement. To form the joint venture partnership, the owner will sell partial stake in the investment holding company.

Ms Tang Wei Leng (邓慧玲), Executive Director of Investment Services of Colliers International, says, “Currently, the 90 office and retail units have an occupancy rate of more than 90 per cent, while the 11 residential units are 84 per cent leased. The self-operated car park also enjoys a high occupancy rate. The total monthly rental income for these properties is more than $600,000.”

Ms Tang continues, “Due to the limited supply of strata-titled office space available in the market, investors are always on the lookout to buy strata office space. In February 2012, a two-storey corner unit of 5,600 sq ft in Peace Centre was sold for S$11 million, or S$1,970 per sq ft. In May 2012, 66 strata-titled office units in Burlington Square were sold for S$89.3 million, which works out to S$1,318 per sq ft based on strata area or S$1,421 per sq ft based on net lettable area excluding terrace space.

Hence, we are optimistic that the strata-titled units in Peace Centre/Peace Mansion – given its proximity to the Central Business District and Orchard Road shopping and entertainment belt – would be in demand.”

Ms Tang adds, “Additionally, there is re-development potential for Peace Centre/Peace Mansion. Subject to the relevant authorities’ approval, it can be re-developed to the maximum of its current gross floor area/baseline record of 627,852 sq ft, exceeding the permissible plot ratio of 4.2 under the Master Plan 2008. The new development will become the largest development in the vicinity, compared to PoMo, Parklane Shopping Centre and Wilkie Edge. In fact, a collective sale exercise for Peace Centre/Peace Mansion was launched in Year 2011 at an indicative price of S$675 million but was unsuccessful.”

The unique advantage that Peace Centre/Peace Mansion has is its strategic location.

The property’s accessibility is boosted by five nearby MRT stations – Dhoby Ghaut MRT interchange, Little India MRT station, Bugis MRT station, Bencoolen MRT station and the upcoming Rochor MRT station – all of which are within walking distance to the property.

Additionally, not only is it at the fringe of Orchard Road, it is also next to the Civic District – nestled among arts and cultural centres, including National Museum of Singapore and Singapore Art Museum, as well as educational institutions, including SOTA and Singapore Management University. The area is also home to several prime residential projects including Parc Emily, 8@Mt Sophia, Sophia Residences and Suites@Orchard.

Notes:

1. Breakdown:

· Total strata area of 90 commercial units: 155,754 sq ft
· Total strata area of 11 residential units: 27,695 sq ft
· Total strata area of 162 car park lots: 100,459 sq ft