Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
According to a real estate title search, Parkway Hospitals Singapore was the investor of the office level at Tong Building. Parkway Hospitals Singapore is part of Bursa Malaysia-listed private healthcare service provider IHH Healthcare. The medical vendor is a continuing occupant in the establishment, occupying fifty percent of the 6th level. The other fifty percent of the ground is occupied by two other health-related companies.
According to Yap, there was substantial attention from a different pool of bidders, consisting of end-users and household offices.
Yap expects the strata office industry to proceed its upward trajectory. “With companies significantly looking for flexible work area services and adjusting to crossbreed work systems, strata workplaces are coming to be a lot more appealing than ever before,” she states. “The durability of the industry and its ability to satisfy progressing requirement indicate a good overview for the future.”
The whole sixth storey of Tong Building on Orchard Street was sold for $31.33 million, based upon a caveat on September 3. The whole strata office ground takes up a space of 6,867 sq ft. The purchase cost shows a unit rate of $4,562 psf, which is the highest psf fee for an office in the top sectors to date. Yap Hui Yee, executive manager of investment sales and capital markets at Savills Singapore, agented the deal.
It makes sense for Parkway Hospitals to buy the entire sixth floor of Tong Property, offered its closeness to Mount Elizabeth Hospital and Medical Centre, that is just a quick walk up the road.
Tong Building is a 19-storey, freehold strata-titled office complex at the corner of prime Orchard Road and Mount Elizabeth. It was constructed in 1978 by TG Development. Next door is Paragon shopping center, and Mount Elizabeth Hospital and Medical Centre are causing it.
Incidentally, she brokered the past high at Solitaire on Cecil in the CBD. It was for 3 entire strata levels spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The 3 floors were sold for a total of $162.8 million, or $4,300 psf, in April 2023.
The $4,562 psf for the 6th level of Tong Structure is “a record-breaking cost in psf terms, setting a brand-new benchmark in Singapore’s strata workplace market,” says Savills’ Yap. She factors in the agreement “a landmark operation in Singapore’s realty history”.
