Thursday, May 31, 2012

Peace Centre, Mansion take new tack


Straits Times: Thu, May 31
PEACE Centre and Peace Mansion are back on the market after three failed collective sale attempts.

This time, one of the owners is taking a different tack, by seeking expressions of interest to co-own and manage part of the property.

About 46 per cent of the total share value of the development, on a 76,617 sq ft site, is up for sale, marketing agent Colliers International said.

This consists of 90 retail and office strata-titled units, including a ground-floor food court, 11 residential units and 162 carpark spaces. They have a total strata area of 283,908 sq ft.

The development comprises Peace Centre - a commercial podium block that is partly seven storeys and partly 10 storeys - and Peace Mansion, a 32-storey residential tower with 84 apartments and two penthouses.

Colliers said the owner, Hong Kong-based Kian An, is seeking a joint venture partner to take over the asset management services so as to enhance the value of the property.

This can be done through active lease management, tenant-mix repositioning and asset enhancement works.

Kian An will sell a partial stake in its investment holding company to form the joint venture.

Colliers noted that 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 carpark enjoys a high occupancy rate, with the total monthly rental income for these properties at more than $600,000, said Ms Tang Wei Leng, executive director of investment services of Colliers International.

'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,' she added.

For example, in February, a 5,600 sq ft, two-storey corner unit in Peace Centre was sold for $11 million - or $1,970 per sq ft.

Moreover, there is redevelopment potential for the Peace Centre and Peace Mansion site, Ms Tang noted.

In fact, the last collective sale exercise for the site was launched last year at an indicative price of $675 million but was unsuccessful...
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Team Marshe
Martin Koh/ Sherry Tang
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