Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
According to a property title search, Parkway Hospitals Singapore was the buyer of the office level at Tong Building. Parkway Hospitals Singapore becomes part of Bursa Malaysia-listed private medical care specialist IHH Healthcare. The medical company is an existing renter in the building, covering fifty percent of the sixth storey. The other fifty percent of the ground is occupied by two other health-related business.
It makes sense for Parkway Hospitals to acquire the whole 6th level of Tong Property, offered its distance to Mount Elizabeth Medical Facility and Medical Centre, that is just a brief step up the route.
According to Yap, there was substantial attention from a different pool of prospective buyers, including end-users and household offices.
The whole 6th level of Tong Establishment on Orchard Street was retailed for $31.33 million, based upon a caveat on September 3. The entire strata office level takes up a section of 6,867 sq ft. The purchase price shows a unit price of $4,562 psf, which is the highest psf fee for a workplace in the prime districts to day. Yap Hui Yee, executive manager of financial investment sales and funding markets at Savills Singapore, brokered the arrangement.
Incidentally, she dealered the past high at Solitaire on Cecil in the CBD. It was for three entire strata levels covering 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The 3 storeys were brought an aggregate of $162.8 million, or $4,300 psf, in April 2023.
Tong Building is a 19-storey, freehold strata-titled office building at the edge of prime Orchard Road and Mount Elizabeth. It was constructed in 1978 by TG Development. Next door is Paragon shopping mall, and Mount Elizabeth Hospital and Medical Centre are behind it.
Yap anticipates the strata office industry to proceed its higher trajectory. “With businesses significantly seeking flexible workspace services and modifying to hybrid work models, strata workplaces are turning into more desirable than ever,” she mentions. “The resilience of the industry and its ability to fulfill progressing demand suggest an appealing expectation for the future.”
The $4,562 psf for the sixth floor of Tong Building is “a record-breaking cost in psf terms, setting a brand-new benchmark in Singapore’s strata workplace market,” states Savills’ Yap. She factors in the offer “a landmark transaction in Singapore’s real estate record”.
