Peace Centre / Peace Mansion receives in-principle approval for lease top up to 99 years
The owners of Peace Centre / Peace Mansion (“PCPM”) applied to the Singapore Land Authority (SLA) around mid-January 2019 to seek in-principle approval (IPA) for lease renewal to a fresh 99 years for the development.
SINGAPORE – The SLA has on 26 March 2019, granted the IPA, subject to redevelopment of the site for a mixed-use project with a total gross floor area of 56,167.15 sqm, being 60 per cent of the total gross floor area for commercial use and the remaining 40 per cent for residential use.
The prime district 9 mixed-use site was launched for sale by tender in late February, but the tender closing date was extended to 3 May 2019 to allow developers more time to evaluate the site, pending tender closing of a couple of Government Land Sale sites (which closed on 28 March 2019), as well as for the reply from SLA on the lease top-up IPA.
“The response for the Middle Road Government Land Sale site from developers is very encouraging, with ten bidders competing for the site. This shows that developers, while selective in their choices of site locations, have continued to show confidence in city centre locations. The in-principle approval on the lease renewal for Peace Centre/Peace Mansion is also timely, with the announcement by URA on the draft Master Plan 2019 introducing a set of incentives to encourage rejuvenation of the city centre, with more live-in population and vibrancy throughout the days and nights. PCPM, being centrally located and highly accessible, with six MRT stations in the vicinity mostly within 500 to 700 metres’ walk, is well placed as an attractive value proposition for developers looking for a mixed-use development in the city in line with this objective,” says Mr. Tan Hong Boon, Executive Director at JLL.
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 per cent GFA) and residential (40 per cent GFA) project. Based on the OPP, a new development on PCPM site could yield about 362,747 sq ft of retail/commercial space with the remaining 241,831 sq ft for residential use.
At the owners’ minimum price of $688 million, it reflects a land rate of approximately $1,474 psf per plot ratio, inclusive of an estimated lease top-up premium but before factoring in bonus balcony GFA for the residential component.
The tender for PCPM closes on Friday, 3 May 2019, at 3.00 p.m.
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