Chip Eng Seng, the Sing-Haiyi Crystal joint venture and Ultra Infinity (UIPL) — a which is jointly owned by SLB Development, KSH Holdings and Ho Lee Group — have jointly won the bidding for the en bloc sale of the Peace Centre/Peace Mansion development with a S$650 million offer, the companies said in filings to SGX Friday.
Under the deal, the offerors will form a joint venture, with Chip Eng Seng holding 40 percent, Sing-Haiyi Crystal holding 30 percent ant the UIPL joint venture holding the remainder, the filings said.
SLB said it was prudent for the company to manage financial and execution risks for the project by collaboration with partners as the ongoing Covid-19 pandemic may present prolonged challenges, including work delays, worker shortages and delivery disruptions.
“The joint offerors collectively have a good mix of experience in property development and/or construction works in Singapore, which is relevant to the redevelopment of the property. The joint offerors will thus be able to tap on each other’s expertise and experience,” diversified property developer SLB Development said in a statement.
The Peace Centre/Peace Mansion development, located in Singapore’s district 9, is a large mixed-development with 319 strata units; the site is in the established Mount Sophia residential enclave, on a prominent corner of Sophia Road and near Selegie Road.
The property is located in the Bras Basah-Bugis neighborhoods, which houses arts, civic, cultural, heritage, design and education amenities. The site has proximity to six MRT stations, connected to four MRT lines.
The buyers plan to redevelop the site into a mixed-use commercial and residential project, with around 60 percent of the total gross floor area earmarked for commercial use, potentially with strata titles, the filing said. In addition, the companies said they would seek underground connections from the Land Transport Authority.
Peace Centre/Peace Mansion has a 99-year leasehold tenure, beginning in 1970, the filings said, adding the site’s buyers will be seeing approval from the Singapore Land Authority for a fresh 99-year lease.
UIPL is 33.33 percent-owned by SLB Development, 33.33 percent-owned by KSH’s wholly owned subsidiary KSH Premier Investment, and 33.33 percent owned by Ho Lee Group, the filing said.
KSH is a construction, property development and property investment group.
Sing-Haiyi Crystal is a 50:50 joint venture between Singapore-listed property developer SingHaiyi Group and Haiyi Holdings, the filing said. Haiyi Holdings, owned by Celine Tang and Gordon Tang, is a controlling shareholder of SingHaiyi, the filing said.
In addition, Celine Tang and Gordon Tang are the controlling shareholders of Chip Eng Seng, which is participating in the deal via its wholly owned subsidiary CEL Development, the holding company for Chip Eng Seng’s property development business.
Celine Tang is a non-independent non-executive director and non-executive chairman of Chip Eng Seng, the filing noted.
Chip Eng Seng noted it has previously partnered with KSH for the High Park Residences and Park Colonial projects, and it tied up with SingHaiyi for the recent successful joint tender for the Maxwell House property in Singapore.