SINGAPORE (EDGEPROP) - A collection of F&B approved commercial strata units at CT Hub 2 have been sold for more than $8.6 million, or about $2,450 psf. The developer of the business 2 development is Chiu Teng Group, who appointed the industrial sales team at Huttons Asia as the sole marketing agents. (See also: Cloud kitchen units at CT Hub 2 available for sale)
CT Hub 2, and the neighbouring development CT Hub 1, are commercial and industrial mixed developments in the Kallang Way Industrial Estate and Business Park District. Both developments feature a mix of office, retail, light industrial, and F&B units.
The 10 strata units have a combined unit area of 3,516 sq ft and are fitted to operate as ‘cloud kitchens’ for food deliveries to the area. The units are fully tenanted to F&B operators such as Da Paolo, Blu Kouzina, Crown Coffee, Duke of Congee, and other brands.
This collection of commercial strata units was part of a portfolio of 29 ground floor units in CT Hub 2 that was put up for sale in May this year.
“Cloud Kitchens are deemed as more ‘Covid resilient’ due to their business model focusing on takeaways and deliveries. Hence, they are less affected by dine-in restrictions. Furthermore, the units sold were all tenanted with an attractive average gross rental yield of above 5%,” says Jonathan Lo, associate senior marketing director from Huttons Asia.
There is high demand for industrial and commercial properties among Singaporean investors, as such assets provide immediate recurring income with potential future capital appreciation, says Joshua Goh, Huttons Project IC for CT Hub 1 & 2.
Goh adds that local investors are keen to diversity their portfolio and reallocate funds into Singapore commercial properties as a hedge against inflation.
“Given the stickiness of rentals in established locations, there is also less volatility in capital fluctuations for such assets. Industrial and commercial properties do not attract ABSD and SSD which makes their investment entry and exits more straightforward as compared to residential property and foreigners are eligible to buy them too,” says Goh.
The Huttons team also sold two more cloud kitchen units from the same portfolio fo 29 units to separate investors, as well as four B1 industrial units to another investor for $5.75 million ($770 psf).
Check out the latest listings near CT Hub 2