Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
The entire 6th storey of Tong Building on Orchard Road was offered for $31.33 million, based on a warning on September 3. The whole strata office level takes up an area of 6,867 sq ft. The acquisition rate shows a unit rate of $4,562 psf, which is the maximum psf fee for a workplace in the top sectors to date. Yap Hui Yee, executive supervisor of investment sales and capital markets at Savills Singapore, serviced the transaction.
Tong Building is a 19-storey, freehold strata-titled office building at the corner of prime Orchard Roadway 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 responsible for it.
It makes sense for Parkway Hospitals to purchase the entire 6th level of Tong Property, provided its proximity to Mount Elizabeth Hospital and Medical Centre, that is just a brief walk up the street.
According to Yap, there was significant attention from a different pool of bidders, consisting of end-users and family offices.
Yap anticipates the strata workplace marketplace to proceed its upward trajectory. “With companies significantly seeking flexible workspace solutions and modifying to hybrid job systems, strata workplaces are turning into much more desirable than ever before,” she says. “The strength of the field and its capability to satisfy growing demand imply a promising outlook for the future.”
Incidentally, she dealered the previous high at Solitaire on Cecil in the CBD. It was for three entire strata floors extending 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three storeys were sold for a total of $162.8 million, or $4,300 psf, in April 2023.
According to a real property title quest, Parkway Hospitals Singapore was the investor of the office floor at Tong Building. Parkway Hospitals Singapore becomes part of Bursa Malaysia-listed private healthcare specialist IHH Healthcare. The medical company is an occurring occupant in the building, occupying half of the sixth level. The other half of the ground is filled by 2 various other medical companies.
The $4,562 psf for the 6th level of Tong Building is “a record-breaking price in psf terms, setting a brand-new benchmark in Singapore’s strata office industry,” claims Savills’ Yap. She takes into account the deal “a landmark operation in Singapore’s realty record”.
