SINGAPORE (EDGEPROP) - Three strata-titled units at Royal Square Mall, located in the Novena area, have just been put up for sale at $19.8 million ($4,520 psf). They have been approved for F&B usage and together measure 4,380 sq ft in size.

The largest unit, 2,669 sq ft in size, is currently tenanted to vegetarian restaurant Lotus. The other two units, 904 sq ft and 807 sq ft in size, were used previously as a showflat and backend office for Thai real estate developer Raimon Land. They are currently untenanted.

The market rental rate for retail units at Royal Square is between $9 and $11 psf per month, according to Sean Huang, lead consultant of Tristar Properties. The potential investor can expect to receive around 3% in gross rental yield based on the selling price, he adds.

“The units are strategically located in front of the escalator landing, and also enjoy a prominent street frontage from the busy junction of Thomson Road and Irrawaddy Road,” says Huang.

Royal Square is a 33-storey, mixed-use development with a two-storey mall, comprising 25 retail shop units and 24 units approved for F&B usage. There are also two restaurant units on the open terrace on the sixth floor, measuring 2,583 sq ft and 4,790 sq ft. Both units are currently leased to a newly opened branch of hot pot restaurant Hai Di Lao.

Additionally, there are 171 medical suites and laboratories from levels 7 to 21. From levels 22 to 33, the building houses the 250-room Courtyard by Marriott Hotel. Developed by a joint venture between Hoi Hup Realty and Sunway Development, the building has a 99-year lease from June 2013.

Currently, no resale F&B or retail unit has been transacted at Royal Square yet. The latest transaction was in August 2017, when a 614 sq ft retail unit on the second floor was bought for $3.68 million ($5,998 psf) as a new sale.

The three units up for sale were bought by a single buyer for a total of $24.95 million in December 2013, when the project was first launched for sale. That works out to between $5,499 and $5,999 psf.

Royal Square Mall is one of the three shopping centres clustered around Novena MRT Station, aside from Square 2 and Velocity@Novena Square, which is linked underground to United Square across the road. It is also in close proximity to Tan Tock Seng Hospital (TTSH) and Mt Elizabeth Novena Hospital.

In the near future, TTSH will be part of Health City Novena, a 17ha integrated healthcare complex with around 6.46 million sq ft of built-up area. It comprises a medical school, as well as public and volunteer healthcare facilities. The complex is targeted to be completed by 2030.

“This asset will appeal to F&B operators that are looking to run their business within Singapore’s largest healthcare hub, coupled with a vibrant office and residential environment,” says Huang, who also adds that there has been a strong and stable demand for F&B spaces in the CBD fringe.

“They are also suitable for both F&B and regular business owners, who may also be attracted to purchase for their own use,” adds Huang.

The properties are offered for sale by expression of interest, with the exercise closing on March 11, 1pm.

Check out the latest listings near Royal Square Mall, Health City Novena, Novena MRT Station