Two prominent commercial buildings along Selegie Road up for en bloc sale
Two prominent commercial buildings along Selegie Road – Selegie Centre and Peace Centre – may be up for en bloc sale soon. Selegie Centre has obtained approval from 90 per cent of owners to be sold en bloc, whereas Peace Centre is 10 per cent shy of the requisite 80 per cent approval level.
Selegie Centre, a 10-storey freehold commercial building has a reserve price set at $120 million or a land rate of $1,942 per sq ft per plot ratio (psf ppr). Peace Centre which is a mixed development with Peace Mansion off Selegie Road, is said to be eyeing a reserve price of $650 million.
The two commercial building have previously unsuccessfully attempted en bloc sale. For Peace Centre, it will be its fourth attempt, and it is the third for Selegie Centre. Selegie Centre, which has 33 shops and 25 apartment, is expected to launch the tender next week with a closing date of 26 July.
Mr M Thomas, chairman of Selegie Centre collective sale committee.said; “We already have inquiries from several potential buyers, and we hope to sell our building fast.”
Mr Paul Ho, chief mortgage consultant at icompareloan.com.sg, said it is good that the owners of Selegie Centre are hoping to sell their building fast.
“It is better to make it fast so that the sale (or non-sale) can be concluded with minimal delay and maximum benefit to the owners,” he said.
Peace Centre, a 99-year-leasehold property, has about 50 years left on its tenure. If the requisite number of owners at Peace Centre consent to the sale, prospective buyers will have to pay an estimated $200 million in lease top-up premium. Development charges are not payable for this property.
Peace Centre and Peace Mansion together, sit on a 76,617 sq ft site with a gross floor area of about 600,000 sq ft. Besides the commercial spaces at Peace Centre, Peace Mansion has a 22-storey residential tower with 84 apartments and two penthouses.
Interest in commercial buildings in the area heightened after CapitaLand Commercial Trust sold Wilkie Edge to Lian Beng for $280 million in July last year.
Located at District 9, the two commercial building are close to several MRT stations – Bras Basah MRT, Dhoby Ghaut MRT, Rochor MRT and Little India. The building are also near several amenities like eating outlets at nearby buildings such as Wilkie Edge, PoMo and The Cathay.
Both commercial buildings are within reasonable distance to Cold Storage, Sheng Siong, Jason’s Market Place and Shop N Save Supermarkets. They are also close to Parklane Shopping Centre, PoMo, The Cathay, Sim Lim Square, Albert Complex, The Verge and Plaza Singapura for an array of amenities such as grocery and retail shopping centres, banks and more.
Buying commercial buildings become more popular after the Government introduced several residential property cooling measures in 2011 and 2013. The pool of local buyers for commercial properties are however smaller.
Also, the process of buying commercial buildings is more complex and varied, as it is also less speculative when compared with residential properties.
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