Portfolio 22 Freehold Strata Shops And Offices Hexacube Sale 38 Mil
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Miltonia Close has established itself as an exclusive area with a mix of elegant private condominiums and landed houses, such as Skies Miltonia, The Miltonia Residences, and The Shaughnessy. With the introduction of a new Executive Condominium (EC), the neighborhood is set to embark on a new phase of development, creating a contemporary and family-friendly residential community that benefits from both verdant surroundings and easy access to urban conveniences. The location is especially attractive to nature enthusiasts and families seeking a peaceful lifestyle while remaining connected to essential amenities and transportation networks. Including Miltonia Close EC in this coveted neighborhood adds to its already luxurious appeal.
The Singapore Grand Prix has become a major event for property owners and agents, as they leverage its popularity to launch new projects. One such offering is a portfolio of 22 strata-titled units at Hexacube, a mixed-use commercial complex located in the Geylang District at 160 Changi Road.
These freehold units consist of 21 retail shops spread across the basement, first, and second floors, as well as a single office unit on the fourth floor. Ranging from 388 sq ft to 904 sq ft, the total strata area of the portfolio is 13,520 sq ft. With a guide price of $38 million, the average price comes to $2,811 psf over the strata area.
The units are currently being offered for sale by expression of interest (EOI), with leading real estate companies Brilliance Capital and AlpsEdge Real Estate as the exclusive marketing agents. The portfolio offers a diverse mix of tenants, including F&B outlets, a fitness centre, a cooking studio, and an office space, catering to a wide range of businesses.
The units in the portfolio are fully tenanted, except for one newly vacated second-floor unit, making it an ideal investment opportunity. With commercial units, buyers are not subject to additional buyer’s stamp duty (ABSD). This portfolio makes up 35% of the total share value and 28% of the strata area in the development, giving the buyer a significant stake and the ability to influence its long-term direction and positioning.
Developed by a consortium consisting of Lian Beng Group, KSH Holdings, and Tee International, Hexacube boasts a futuristic façade. The freehold project is a redevelopment of the former AIA Building, which the consortium acquired in 2013 for $68 million.
Launched for sale in March 2014, Hexacube offers a total of 73 strata units, including three levels of retail, three levels of offices, and a basement carpark with 25 parking spots and two loading bays. While the development has sold most of its units, the developer has retained this portfolio of 22 units for investment. In September 2020, the portfolio was offered for sale at an indicative price of $43.8 million ($3,253 psf).
Brilliance Capital’s founder and executive director, Sammi Lim, notes that the previous indicative price was 13.2% higher than the current asking price. This has made the gross yield of the portfolio more attractive, at 2.4% based on the $38 million price, which is likely to increase once the vacated unit is tenanted.
The units at Hexacube are popular with beauty and hair salons as each unit comes with an en-suite washroom and water point. This feature is rare in strata commercial developments, making the units highly sought after. The units also have high ceilings, exceeding 4m on the basement level and 5m on the upper floors.
Hexacube’s prime location in the Geylang District is ideal for businesses, with its close proximity to neighboring landed houses and low-rise condominiums of Everitt Road, Langsat Road, and the Joo Chiat area. Across the road is the newly completed 1,399-unit Parc Esta, injecting a sizeable and affluent resident base into the neighborhood, according to Carin Puah, founder and executive director of AlpsEdge Real Estate.
Besides high-net-worth investors, Brilliance Capital’s Lim increasingly sees family offices, private equity groups, and individual investors participating in crowdfunding to purchase properties collectively. Their preference is for freehold, income-yielding assets, making the Hexacube portfolio an attractive investment opportunity.
The EOI for the Hexacube portfolio will close on Nov 12 at 3pm.