Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
According to a real property title quest, Parkway Hospitals Singapore was the investor of the office level at Tong Building. Parkway Hospitals Singapore is part of Bursa Malaysia-listed private medical care specialist IHH Healthcare. The medical company is an occurring renter in the building, covering fifty percent of the 6th storey. The other half of the floor is taken up by 2 various other health-related business.
The $4,562 psf for the 6th ground of Tong Building is “a record-breaking price in psf terms, setting a new benchmark in Singapore’s strata office market,” states Savills’ Yap. She factors in the agreement “a landmark transaction in Singapore’s property history”.
Yap assumes the strata workplace market to proceed its upward trajectory. “With businesses significantly seeking adaptable work area solutions and adapting to crossbreed work models, strata workplaces are turning into much more attractive than ever,” she says. “The resilience of the market and its ability to meet progressing demand imply a good outlook for the future.”
Furthermore, 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 floors were yielded a total of $162.8 million, or $4,300 psf, in April 2023.
It makes sense for Parkway Hospitals to purchase the entire 6th level of Tong Building, given its distance to Mount Elizabeth Hospital and Medical Centre, which is simply a brief step up the route.
According to Yap, there was substantial interest from a varying pool of bidders, consisting of end-users and family workplaces.
The whole sixth storey of Tong Building on Orchard Street was offered for $31.33 million, based upon a caveat on September 3. The entire strata office level takes up an area of 6,867 sq ft. The purchase cost reflects a unit rate of $4,562 psf, which is the maximum psf value for an office in the top sectors to date. Yap Hui Yee, executive director of financial investment sales and resources markets at Savills Singapore, brokered the agreement.
Tong Building is a 19-storey, freehold strata-titled office complex at the edge of prime Orchard Roadway and Mount Elizabeth. It was built in 1978 by TG Development. Next door is Paragon shopping mall, and Mount Elizabeth Hospital and Medical Centre are responsible for it.
