Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
According to Yap, there was substantial attention from a diverse pool of bidders, including end-users and family offices.
The entire sixth floor of Tong Building on Orchard Street was retailed for $31.33 million, based on a warning on September 3. The entire strata office floor takes up a space of 6,867 sq ft. The investment rate shows a unit rate of $4,562 psf, which is the maximum psf fee for an office in the top sectors to day. Yap Hui Yee, executive manager of financial investment sales and resources markets at Savills Singapore, agented the agreement.
According to a real property title search, Parkway Hospitals Singapore was the purchaser of the office floor at Tong Property. Parkway Hospitals Singapore becomes part of Bursa Malaysia-listed exclusive medical care service provider IHH Healthcare. The medical company is an existing lessee in the building, occupying half of the sixth floor. The other fifty percent of the ground is filled by two other medical companies.
The $4,562 psf for the sixth floor of Tong Building is “a record-breaking price in psf terms, establishing a new benchmark in Singapore’s strata office market,” states Savills’ Yap. She takes into account the agreement “a landmark operation in Singapore’s property record”.
Incidentally, she dealered the previous 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 levels were yielded a total of $162.8 million, or $4,300 psf, in April 2023.
It makes sense for Parkway Hospitals to buy the entire sixth floor of Tong Building, provided its distance to Mount Elizabeth Hospital and Medical Centre, which is just a short walk up the road.
Yap assumes the strata workplace marketplace to proceed its higher trajectory. “With businesses increasingly seeking adaptable workspace resolutions and adjusting to crossbreed job models, strata offices are turning into much more appealing than ever,” she states. “The strength of the industry and its capability to satisfy progressing requirement imply an appealing outlook for the future.”
Tong Establishment is a 19-storey, freehold strata-titled office building at the edge of prime Orchard Roadway and Mount Elizabeth. It was constructed in 1978 by TG Development. Next door is Paragon mall, and Mount Elizabeth Hospital and Medical Centre are behind it.
