The 10 commercial units of the “Cloud Kitchen” type are fully leased and generate a gross yield of over 5%. (Image: Huttons Asia)

SINGAPORE (EDGEPROP) – A number of hospitality-approved commercial condominiums in CT Hub 2 have been sold for more than $8.6 million, or about $2,450 per sq ft. The developer of the Business 2 development is Chiu Teng Group, which appointed Huttons Asia’s industrial sales team as sole selling agents. (See also: Cloud Kitchen units available for sale at CT Hub 2)

CT Hub 2 and its neighbouring CT Hub 1 project are mixed commercial and industrial projects located in the Kallang Way Industrial and Commercial Area. Both projects offer a mix of office, retail, light industrial and hospitality units.

The 10 strata units have a total area of ​​325 sqm and are equipped to act as ‘cloud kitchens’ for food delivery in the area. The units are fully leased to F&B operators such as Da Paolo, Blu Kouzina, Crown Coffee, Duke of Congee and other brands.

This collection of commercial condominiums was part of a portfolio of 29 ground floor apartments in CT Hub 2 that was offered for sale in May of this year.

“Cloud kitchens are considered more ‘Covid-resilient’ as their business model is geared towards takeaway and delivery, so they are less affected by restrictions on on-site consumption. In addition, all units sold were leased with an attractive average gross rental yield of over 5%,” says Jonathan Lo, Associate Senior Marketing Director of Huttons Asia.

There is high demand for industrial and commercial real estate among Singaporean investors as such assets offer immediate recurring income with potential future appreciation, says Joshua Goh, Hutton’s Project IC for CT Hub 1 & 2.

Goh adds that local investors are keen to diversify their portfolios and shift their funds into commercial real estate in Singapore to protect against inflation.

“Given the rental stability 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 entry and exit from the investment easier compared to residential properties and also makes foreigners eligible to buy,” says Goh.

The Huttons team also sold two additional Cloud Kitchen units from the same 29-unit portfolio to separate investors, as well as four B1 industrial units to another investor for $5.75 million ($770 per square foot).

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