S'pore-listed firms make $650m offer for Peace Centre/Peace Mansion

A group of 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 yesterday.

The group comprises Chip Eng Seng; a SingHaiyi joint venture; and Ultra Infinity, which is equally owned by a KSH Holdings unit, 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 Singapore billionaire couple Gordon Tang and his wife Celine. The couple are controlling shareholders of both SingHaiyi and Chip Eng Seng.

Chip Eng Seng and SingHaiyi had in May partnered Chuan Investments to clinch Maxwell House for $276.8 million in a collective sale tender.

Peace Centre/Peace Mansion made its sixth attempt at a collective sale in September, 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 spaces, totalling 319 strata lots in a 10-storey front podium block and a rear 32-storey tower.

The site 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 its two partners taking 30 per cent each.

The acquisition is subject, among other things, 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 of it - 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.

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A version of this article appeared in the print edition of The Straits Times on December 04, 2021, with the headline S'pore-listed firms make $650m offer for Peace Centre/Peace Mansion. Subscribe