Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
According to Yap, there was considerable attention from a varying pool of bidders, consisting of end-users and home workplaces.
According to a real property title search, Parkway Hospitals Singapore was the investor of the office level at Tong Building. Parkway Hospitals Singapore belongs to Bursa Malaysia-listed exclusive healthcare provider IHH Healthcare. The medical vendor is an existing lessee in the facility, taking up fifty percent of the sixth level. The other fifty percent of the ground is filled by two various other medical firms.
Tong Establishment is a 19-storey, freehold strata-titled office building at the edge of prime Orchard Road and Mount Elizabeth. It was built in 1978 by TG Development. Next door is Paragon shopping center, and Mount Elizabeth Hospital and Medical Centre are responsible for it.
It makes sense for Parkway Hospitals to buy the entire 6th level of Tong Building, offered its proximity to Mount Elizabeth Hospital and Medical Centre, which is just a quick step up the road.
The whole sixth level of Tong Establishment on Orchard Street was offered for $31.33 million, based on a caveat on September 3. The entire strata office ground utilizes an area of 6,867 sq ft. The purchase price reflects a unit rate of $4,562 psf, which is the maximum psf price for an office in the prime sectors to date. Yap Hui Yee, executive manager of financial investment sales and resources markets at Savills Singapore, serviced the arrangement.
Yap assumes the strata workplace marketplace to continue its higher trajectory. “With companies increasingly seeking versatile work space resolutions and adjusting to hybrid job models, strata workplaces are becoming more attractive than ever before,” she mentions. “The strength of the industry and its capability to meet evolving demand suggest a good overview for the future.”
The $4,562 psf for the sixth level of Tong Building is “a record-breaking price in psf terms, establishing a brand-new benchmark in Singapore’s strata workplace market,” claims Savills’ Yap. She considers the deal “a landmark transaction in Singapore’s real estate history”.
Furthermore, she brokered the former 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 3 floors were yielded a total of $162.8 million, or $4,300 psf, in April 2023.