Entities linked to Chip Eng Seng, Sing Haiyi joint venture and Ultra Infinity have made a joint $650 million bid for the combined development of Peace Centre and Peace Mansion, by way of a private treaty, making it the largest collective sale this year.
A KSH Holdings subsidiary, SLB Development and Ho Lee Group each own a one-third stake in Ultra Infinity.
The SingHaiyi joint venture, Sing-Haiyi Crystal, is equally owned by a SingHaiyi Group subsidiary and an entity controlled by Singaporeans Gordon Tang and Celine Tang – who are also Chip Eng Seng controlling shareholders.
JLL executive director Tan Hong Boon said with a sale price of $650 million, the unit land rate for the deal is $1,426 per square foot per plot ratio (psf ppr), after including an estimated lease top-up premium. After factoring in an additional 7 per cent bonus gross floor area (GFA) for the residential component, the land rate is $1,388 psf ppr.
JLL is the sole marketing agent for Peace Centre. Previously Peace Centre owners engaged Savills Singapore and Colliers in separate en bloc exercises to market the property. The owners were not able to get the 80 per cent approval needed for the potential collective sale in 2007, where they were looking at an indicative price of $470 million.
The approval required was later achieved in February 2011 but with a higher asking price of $700 million, said Savills at the time. The owners tried selling the property in July 2011 at $675 million and again in December 2014 at $680 million. They were eyeing a reserve price of $650 million in 2018 and later launched a $688 million tender for the property in February 2019.
“We have been persistent over the years and never gave up. We have finally come to this stage and successfully found a buyer on our fifth attempt,” said Mohammed Rafiq Maideen, chairman of Peace Centre’s collective sale committee. He added that the owners were more realistic this round.
Source: The Business Times