Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
The $4,562 psf for the 6th level of Tong Building is “a record-breaking rate in psf terms, establishing a brand-new benchmark in Singapore’s strata workplace market,” states Savills’ Yap. She considers the offer “a landmark transactions in Singapore’s property history”.
According to Yap, there was considerable attention from a different pool of bidders, including end-users and family workplaces.
Tong Building is a 19-storey, freehold strata-titled office building at the corner of prime Orchard Roadway and Mount Elizabeth. It was built in 1978 by TG Development. Next door is Paragon mall, and Mount Elizabeth Hospital and Medical Centre are behind it.
Yap assumes the strata workplace industry to continue its upward trajectory. “With companies significantly looking for flexible work area options and modifying to hybrid work models, strata offices are becoming a lot more attractive than ever before,” she mentions. “The resilience of the market and its capacity to satisfy growing demand imply a good expectation for the future.”
According to a real property title quest, Parkway Hospitals Singapore was the purchaser of the office floor at Tong Building. Parkway Hospitals Singapore belongs to Bursa Malaysia-listed exclusive medical care provider IHH Healthcare. The medical company is a continuing renter in the facility, taking up fifty percent of the sixth floor. The other fifty percent of the ground is taken up by 2 various other medical companies.
Incidentally, she dealered the former high at Solitaire on Cecil in the CBD. It was for 3 entire strata floors spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three levels were brought a total of $162.8 million, or $4,300 psf, in April 2023.
It makes sense for Parkway Hospitals to purchase the whole sixth floor of Tong Building, provided its closeness to Mount Elizabeth Hospice and Medical Centre, that is just a short step up the route.
The entire 6th floor of Tong Building on Orchard Street was retailed for $31.33 million, based upon a caveat on September 3. The whole strata office floor utilizes a section of 6,867 sq ft. The purchase rate reflects a unit cost of $4,562 psf, which is the greatest psf value for an office in the prime sectors to date. Yap Hui Yee, executive director of investment sales and funding markets at Savills Singapore, brokered the deal.
