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

SINGAPORE (EDGEPROP) - A portfolio of 12 retail units at the mixed-use development Royal Square in Novena is on the market for sale. The units have sizes ranging from 226 sq ft to 2,217 sq ft and span the retail podium's first and second levels, with a total strata area of 5,221 sq ft. The prices range from $1.2 million ($5,310 psf) for the smallest unit to $28 million ($5,363 psf) for the entire portfolio.

Developed by a joint venture between Hoi Hup Realty and Sunway Developments, Royal Square was completed in 2020. It has a mix of 171 medical suites, a 250-room hotel and a two-storey retail podium with 25 strata-titled shop units. Royal Square has a prominent frontage along the junction of Irrawaddy Road and Thomson Road, and a short walk to Novena MRT station. The retail units are tenanted to various businesses, including restaurants, education centres and beauty salons.

“The portfolio of retail units at Royal Square offers immediate rental income to investors, with the flexibility for end-users to occupy the space in the midterm,” says Yap Hui Yee, executive director, investment sales and capital markets at Savills Singapore. “Prospective purchasers may also consider exploring alternative uses, such as medical suites and health and wellness services, subject to relevant authorities’ approval.” A change of use to medical suites has already been obtained for six of the 12 units, adds Yap.

Read also: Hoi Hup unveils hotel at Royal Square at Novena

Royal Square is situated near the Health City Novena, Singapore’s largest healthcare complex, which is targeted to be completed by 2030. The 17-hectare integrated development will incorporate 10 Buildings, including Tan Tock Seng Hospital and five new healthcare facilities connected via a network of MRT, pedestrian walkways, and shuttle bus services. According to Savills, Health CIty Novena will extend beyond healthcare facilities to encompass education, commercial, and leisure spaces.

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

The sale of the 12 retail units will be conducted through an expression of interest (EOI) exercise, which closes on Friday, 24 March 2023, at 3pm.