Parkway Hospitals pays $31.33 mil or a record $4,562 psf for sixth floor office at Tong Building
The entire 6th level of Tong Building on Orchard Street was offered for $31.33 million, based on a caveat on September 3. The whole strata office ground takes up an area of 6,867 sq ft. The investment cost shows a unit cost of $4,562 psf, which is the greatest psf fee for an office space in the top sectors to date. Yap Hui Yee, executive director of financial investment sales and funding markets at Savills Singapore, agented the deal.
Yap expects the strata office marketplace to continue its upward trajectory. “With companies increasingly seeking flexible work space solutions and adjusting to crossbreed job models, strata workplaces are becoming more attractive than ever before,” she states. “The resilience of the field and its capability to satisfy evolving demand imply a good overview for the future.”
Tong Property is a 19-storey, freehold strata-titled office complex at the edge 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 responsible for it.
According to a real estate title search, Parkway Hospitals Singapore was the investor of the office level at Tong Building. Parkway Hospitals Singapore belongs to Bursa Malaysia-listed private healthcare service provider IHH Healthcare. The medical vendor is an existing occupant in the establishment, taking up fifty percent of the sixth floor. The other fifty percent of the ground is occupied by two various other health care firms.
Meyer Blue UOL Group Limited & Singapore Land
The $4,562 psf for the sixth floor of Tong Building is “a record-breaking price in psf terms, setting a brand-new benchmark in Singapore’s strata workplace market,” states Savills’ Yap. She factors in the deal “a landmark operation in Singapore’s realty history”.
Incidentally, she brokered the past high at Solitaire on Cecil in the CBD. It was for 3 whole strata floors covering 37,857 sq ft at the 20-storey, freehold Solitaire on Cecil in the CBD. The 3 levels were yielded an aggregate of $162.8 million, or $4,300 psf, in April 2023.
According to Yap, there was substantial attraction from a varying pool of bidders, featuring end-users and family workplaces.
It works for Parkway Hospitals to buy the entire sixth level of Tong Property, given its proximity to Mount Elizabeth Medical Facility and Medical Centre, that is just a brief walk up the road.
