More than a dozen cloud-kitchen units at Lavender's CT Hub 2 change hands

TEN commercial units used as cloud kitchens at CT Hub 2 have been sold for more than S$8.6 million or S$2,450 per square foot (sq ft) this month, Huttons said on Thursday. It did not identify the buyer.

The Business Times first reported in May that design and construction firm Chiu Teng Group is understood to be selling its portfolio of 29 ground-floor cloud kitchen units in CT Hub 2 via expression of interest.

These 10 F&B-approved commercial-titled units have a total unit area of 3,516 sq ft. They are fitted to operate as cloud kitchens, and are fully tenanted to established F&B operators such as Da Paolo, Blu Kouzina, Crown Coffee, Duke of Congee, My Fav Bowl, Petite Pantry and several other tenants.

CT Hub 1 and 2 are commercial and industrial mixed developments centrally located in the Kallang Way Industrial Estate and Business Park district. They each house a combination of office, retail, light-industrial and F&B units and are a two-minute walk from Bendemeer MRT station, which is on the Downtown Line.

Cloud kitchens are deemed as more "Covid-resilient" due to their business model focusing on takeaways and deliveries, said Jonathan Lo, associate senior marketing director from Huttons, in a statement. The units sold were all tenanted with an average gross rental yield of above 5 per cent.

Unlike private residential properties, industrial and commercial properties do not attract Additional Buyer's Stamp Duty and Seller's Stamp Duty.

The Huttons team has sold another two other cloud kitchen units in CT Hub 2 to separate investors. They have also sold four B1 industrial units in CT Hub to another bulk purchaser. The four B1 industrial units have a total floor area of 7,471 sq ft and were sold for S$5.75 million, or S$770 per sq ft.

Another four units at CT Hub 2 remain available for sale from Huttons, with the smallest available unit asking for at least S$644,000.