Portfolio 22 Freehold Strata Shops And Offices Hexacube Sale 38 Mil
The Singapore Grand Prix is being used as a platform by some property owners and agents to introduce new projects. One such development is a group of 22 strata-titled units located within the Geylang District at Hexacube, a mixed-use commercial complex situated at 160 Changi Road.
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The freehold units consist of 21 retail shops spread across the basement, first, and second floors, as well as a single office unit located on the fourth floor. The sizes of the units range from 388 sq ft to 904 sq ft, with a total strata area of 13,520 sq ft. Priced at $38 million, the average cost per square foot over the strata area in the portfolio is $2,811. The units are currently up for sale through an expression of interest (EOI), with Brilliance Capital and AlpsEdge Real Estate serving as the exclusive marketing agents.
With the portfolio consisting of commercial units, buyers are not subject to additional buyer’s stamp duty (ABSD). All units in the portfolio, except for one recently vacated unit on the second floor, are currently tenanted. The portfolio makes up 35% of the total share value and 28% of the strata area in the development.
Sammi Lim, founder and executive director of Brilliance Capital, states that this provides the buyer with a significant stake in the development, giving them the ability to influence its long-term direction and positioning.
Featuring a modern façade, Hexacube was constructed by a consortium consisting of Lian Beng Group, KSH Holdings, and Tee International. The freehold project is a redevelopment of the former AIA Building, which was acquired by the consortium for $68 million in 2013.
One of the F&B units on the first level included in the portfolio is Little Italy Salumeria (Photo: Samuel Isaac Chua/EdgeProp Singapore) The interior of Little Italy restaurant (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Launched for sale in March 2014, Hexacube offers a total of 73 strata units, including three floors of retail and three levels of offices, as well as a basement carpark with 25 parking spots and two loading bays. While the developer sold the majority of the units, they retained this portfolio of 22 units for investment purposes. In September 2020, the developer put the portfolio up for sale with an indicative price of $43.8 million ($3,253 psf).
Lim explains that the previous indicative price was 13.2% higher than the current asking price, making the gross yield for the overall portfolio more attractive at 2.4% based on the $38 million price. This yield is expected to increase once the recently vacated unit is leased out.
Focusing on education, the first level has been occupied by beauty and hair salons, such as Aquarius Aesthetic, Aura Beauty Studio, Fit Kaki, Lydia’s Oven, and Little Italy Salumeria restaurant. On the fourth level, there is an office unit that has been leased by Exodus Physiotherapy since December 2023.
Hexacube’s units are highly sought after by beauty and wellness salons, hair studios, nail spas, and F&B establishments due to each unit’s en-suite bathroom and water point, which is a rare feature in strata commercial developments, according to Lim. Additionally, the units boast high ceilings, with heights exceeding 4m on the basement level and 5m on the upper levels.
In the surrounding area of Hexacube, there are low-rise condominiums and residences on Everitt Road, Langsat Road, and Joo Chiat area (Photo: Samuel Isaac Chua/EdgeProp Singapore) Across the street is the recently completed 1,399-unit Parc Esto condominium (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Surrounding Hexacube are low-rise condominiums and residences on Everitt Road, Langsat Road, and Joo Chiat area. Just across the street is the recently completed 1,399-unit Parc Esto condominium. “Together with the nearby landed housing, Parc Esta has brought a significant and affluent resident base into the area,” says Carin Puah, founder and executive director of AlpsEdge Real Estate.
In addition to high-net-worth investors, Lim of Brilliance Capital has noticed an increase in family offices, private equity groups, and individual investors participating in crowdfunding to collectively purchase properties. “These buyers tend to prefer freehold, income-generating assets,” says Lim.
The EOI for this portfolio will close on November 12, 3pm.