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

Royal Square, a mixed-use development located at the junction of Irrawaddy Road and Thomson Road, Novena, is offering for sale a portfolio of 12 retail units of various sizes ranging from 226 sq ft to 2,217 sq ft, spanning the podium’s first and second levels, with a total strata area of 5,221 sq ft. Prices of the units range from $1.2 million ($5,310 psf) 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, and comprises of 171 medical suites, a 250-room hotel and a two-storey retail podium featuring 25 strata-titled shop units.

The retail units are tenanted to various businesses, including restaurants, education centres and beauty salons, providing immediate rental income to investors, and the flexibility for end-users to occupy the space in the midterm. Yap Hui Yee, executive director, investment sales and capital markets at Savills Singapore affirms that prospective purchasers may also consider exploring alternative uses, such as medical suites and health and wellness services, subject to relevant authorities’ approval. Indeed, a change of use has already been obtained for six of the 12 units.

Royal Square’s strategic location lies near Health City Novena, a 17-hectare integrated development targeted for completion by 2030, which will consist of 10 Buildings, including Tan Tock Seng Hospital, and five new healthcare facilities connected via a network of MRT, pedestrian walkways, and shuttle bus services. Savills also notes that Health City Novena will have educational, commercial, and leisure spaces.

Strata commercial units in the vicinity of Royal Square have already been transacted indicating its potential. In October 2021, an 807 sq ft unit on the Tengah Plantation EC second level changed hands for $3.6 million ($4,459 psf), and in October 2022, another 237 sq ft unit on the second level was sold for $1.17 million ($4,941 psf).

An expression of interest (EOI) exercise, closing on Friday, 24 March 2023, at 3pm, is currently underway for the sale of the 12 retail units of Royal Square.