Photo of F&B units at CT Hub 2 (Credit: Huttons Asia)
10 F&B approved commercial titled units with a total unit area of 3,516 sq ft at CT Hub 2 have been sold for more than $8.6 million or $2,450 per sq ft recently in July 2021. The Huttons Industrial sales team, “Industrialists”, are the appointed sales team by the developer, Chiu Teng Group. The sale was jointly brokered by Project IC, Mr Joshua Goh, and his colleague, Mr Jonathan Lo.
These F&B units which are fitted to operate as “Cloud Kitchens” are fully tenanted to established F&B operators such as Da Paolo, Blu Kouzina, Crown Coffee, Duke of Congee, My Fav Bowl, Petite Pantry and several other tenants.
CT Hub 1 & 2 are commercial and industrial mixed developments centrally located within the Kallang Way Industrial Estate and Business Park district. They consist of a combination of office, retail, light industrial and F&B units within the same development. It is also a short 2-minute walk to Bendemeer MRT Station which is on the Downtown Line.
Situated next to the Lavender and Jalan Besar Lifestyle district, it is within walking distance to many popular F&B outlets to create a vibrant social and dining culture within the neighbourhood.
There has been a recent increased trend in investment on food related properties given the need for centralized kitchen operations for takeaways and deliveries.
“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 Mr Jonathan Lo, Associate Senior Marketing Director from Huttons.
“There has been a high demand amongst investors in Singapore looking to invest in industrial and commercial properties. Such properties can provide immediate recurring income with potential future capital appreciation. Many investors are looking to diversify their portfolio and redeploy funds from some of their riskier investments into Singapore commercial properties which can be a good 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,” adds Mr Joshua Goh, Huttons Project IC for CT Hub 1 & 2.
The Huttons team, Industrialists, have also sold another two other cloud kitchen units in CT Hub 2 to separate investors. They have also sold four B1 industrial units in CT Hub to another bulk purchaser. The four B1 industrial units have a total floor area of 7,471 sq ft and were sold for $5.75 million or $770 per sq ft.
“Four units at CT HUB2 are still available for sale and are priced attractively with the smallest available unit asking from $644,000. We continue to see strong demand for these properties due to their unique proposition and central location,” Mr Jonathan Lo concludes.
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