Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
Tong Property 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.
The $4,562 psf for the 6th floor of Tong Structure is “a record-breaking cost in psf terms, establishing a new benchmark in Singapore’s strata office industry,” states Savills’ Yap. She takes into account the offer “a landmark transactions in Singapore’s real estate record”.
According to a real property title search, Parkway Hospitals Singapore was the purchaser of the office level at Tong Building. Parkway Hospitals Singapore is part of Bursa Malaysia-listed private medical care specialist IHH Healthcare. The medical vendor is a continuing tenant in the establishment, taking up half of the 6th level. The other fifty percent of the ground is taken up by two other health-related companies.
Yap expects the strata workplace industry to continue its higher trajectory. “With companies significantly seeking versatile work area resolutions and adjusting to hybrid job models, strata offices are coming to be much more attractive than ever,” she states. “The resilience of the market and its ability to satisfy changing requirement indicate an appealing overview for the future.”
The entire 6th level of Tong Establishment on Orchard Street was sold for $31.33 million, based upon a warning on September 3. The entire strata office level utilizes a space of 6,867 sq ft. The purchase rate mirrors a unit rate of $4,562 psf, which is the maximum psf fee for an office in the prime sectors to day. Yap Hui Yee, executive supervisor of investment sales and capital markets at Savills Singapore, brokered the agreement.
It works for Parkway Hospitals to buy the whole sixth floor of Tong Building, provided its proximity to Mount Elizabeth Medical Facility and Medical Centre, which is just a quick walk up the route.
Furthermore, she brokered the former high at Solitaire on Cecil in the CBD. It was for 3 whole strata floors spanning 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The three storeys were sold for an aggregate of $162.8 million, or $4,300 psf, in April 2023.
According to Yap, there was substantial interest from a diverse pool of prospective buyers, including end-users and family offices.
