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 purchaser of the office level at Tong Building. Parkway Hospitals Singapore is part of Bursa Malaysia-listed exclusive medical care specialist IHH Healthcare. The medical company is an occurring tenant in the establishment, occupying half of the sixth storey. The other half of the ground is filled by 2 various other health-related companies.
Incidentally, she brokered the former high at Solitaire on Cecil in the CBD. It was for three whole strata levels spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three levels were yielded a total of $162.8 million, or $4,300 psf, in April 2023.
It works for Parkway Hospitals to acquire the entire sixth level of Tong Building, provided its distance to Mount Elizabeth Hospital and Medical Centre, which is simply a quick walk up the road.
Yap assumes the strata office industry to continue its higher trajectory. “With businesses increasingly looking for flexible work area services and modifying to hybrid work models, strata offices are turning into a lot more appealing than ever before,” she says. “The strength of the industry and its capacity to meet growing need indicate a good overview for the future.”
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 mall, and Mount Elizabeth Hospital and Medical Centre are behind it.
The $4,562 psf for the sixth ground of Tong Structure is “a record-breaking rate in psf terms, establishing a new benchmark in Singapore’s strata workplace industry,” states Savills’ Yap. She considers the agreement “a landmark transactions in Singapore’s real estate history”.
The whole sixth level of Tong Building on Orchard Street was retailed for $31.33 million, based on a warning on September 3. The whole strata office floor utilizes a space of 6,867 sq ft. The purchase cost reflects a unit price of $4,562 psf, which is the highest psf price for a workplace in the top districts to date. Yap Hui Yee, executive director of financial investment sales and funding markets at Savills Singapore, serviced the deal.
According to Yap, there was substantial attention from a varying pool of bidders, including end-users and household workplaces.
