Portfolio of strata retail units at Royal Square for sale at $28 mil

The portfolio of retail units at Royal Square, located at the junction of Irrawaddy Road and Thomson Road, offers prospective purchasers an opportunity for immediate rental income with the flexibility for end-users to occupy the space in the future. Investing in the portfolio of 12 units also provides the option to explore alternative uses such as medical suites and health and wellness services, subject to relevant authorities’ approval. A change of use has already been obtained for six of the units.

The portfolio at Royal Square, a mixed-use development developed by a joint venture between Hoi Hup Realty and Sunway Developments, comprises 12 retail units spanning the retail podium’s first and second levels. These retail units, ranging in size from 226 sq ft to 2,217 sq ft, have a total strata area of 5,221 sq ft, and will be offered for sale via an expression of interest exercise that ends on 24 March 2023. Prices range from $1.2 million ($5,310 psf) for the smallest unit to $28 million ($5,363 psf) for the entire portfolio.

The retail units are tenanted to various businesses, including restaurants, education centres and beauty salons. With its prominent frontage along the junction of Irrawaddy Road and Thomson Road, the units are a short walk away from Novena MRT station.

The sale of the portfolio at Royal Square provides prospective purchasers with immediate rental income, as well as future flexibility for end-users to occupy the space. Exploring alternative uses such as medical suites and health and wellness services may also be considered, given that a change of use to medical suites has already been obtained for six of the units.

Located near the Health City Novena – Singapore’s largest healthcare complex scheduled to be completed by 2030 – Royal Square is poised to benefit from the development of this integrated precinct which will include Tan Tock Seng Hospital and five other healthcare facilities connected by a network of MRT, pedestrian walkways and shuttle bus services.

Savills cites that the 17-hectare complex will extend beyond healthcare to include education, commercial and leisure spaces.

The latest transaction of a retail unit at Royal Square at Novena clocked in at $3.6 million ($4,459 psf) for an 807 sq ft unit on the second level in October 2022, according to a caveat lodged Senja Close EC with URA Realis. Prior to that, another 237 sq ft unit on the same level changed hands for $1.17 million ($4,941 psf) in October 2021.

Strata commercial units transacted in the vicinity of Royal Square at Novena (Source: EdgeProp Landlens)

Given its proximity and access to numerous amenities, retail units at Royal Square and its immediate surroundings remain attractive in the current market conditions. Investing in the portfolio of retail units at Royal Square provides a unique opportunity to benefit from its strategic location and various other benefits.