14 Years of Waiting, 5 Attempts, Finally Over, Owners Rejoice
Total Collective Sales in Singapore Hit Past S$2 billion
Peace Centre Mansion in prime district 9 has finally found a buyer and sold en bloc for S$650 million during their private treaty sale period.
Joint venture of SingHaiyi, Chip Eng Seng and Ultra Infinity have successfully acquired the 1 Sophia Road prime site.
The unit land prices for the deal, after incorporating an expected lease top-up premium, is S$1,426 per square foot per plot ratio (psf ppr), according to JLL executive director Tan Hong Boon.
The land rate is S$1,388 psf ppr after accounting for a 7% bonus gross floor area (GFA) for the residential component.
In September 2021, PCPM was put up for collective sale, with the owners expecting incoming offers in excess of S$650 million.
“We have never given up throughout the years because we have been tenacious.” “We’ve finally arrived at this point, and on our fifth try, we’ve found a buyer,” said Mohamed Rafig Maideen, head of PCPM’s collective sale committee.
This round, he noted, the owners were more realistic.
Chip Eng Seng, Sing-Haiyi Crystal, and Ultra Infinity will create a joint venture as part of the agreement.
Chip Eng Seng will have the greatest share, with 40%, while the other two will each have 30%.
The joint offerors must acquire a sale order sanctioning the collective sale, as well as permission from the property’s lessor and satisfying planning standards, in order to complete the en bloc acquisition of PCPM.
The joint offerors will also need the Singapore Land Authority’s (SLA) permission for a new 99-year lease extension.
The joint offerors had paid a S$1 million offer fee in conjunction with the transaction as of Friday.
The Ultra Infinity consists of SLB Development, Ho Lee Group and a KSH Holdings subsidiary.
Sing-Haiyi Crystal, a SingHaiyi Group joint venture, is held equally by a SingHaiyi Group subsidiary and a company controlled by Singaporeans Gordon Tang and Celine Tang, who are also key owners in Chip Eng Seng.