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 interest from a varying pool of prospective buyers, featuring end-users and family workplaces.
Incidentally, she dealered the past high at Solitaire on Cecil in the CBD. It was for 3 entire strata levels extending 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.
The entire sixth storey of Tong Property on Orchard Street was sold for $31.33 million, based on a warning on September 3. The whole strata office level utilizes a space of 6,867 sq ft. The investment price reflects a unit rate of $4,562 psf, which is the highest psf fee for an office space in the top districts to day. Yap Hui Yee, executive manager of financial investment sales and resources markets at Savills Singapore, brokered the transaction.
According to a property title quest, Parkway Hospitals Singapore was the buyer of the office floor at Tong Property. Parkway Hospitals Singapore becomes part of Bursa Malaysia-listed exclusive medical care specialist IHH Healthcare. The medical company is a continuing lessee in the establishment, taking up fifty percent of the 6th level. The other half of the floor is taken up by two various other health care firms.
The $4,562 psf for the 6th floor of Tong Building is “a record-breaking cost in psf terms, establishing a brand-new benchmark in Singapore’s strata office market,” claims Savills’ Yap. She considers the deal “a landmark transaction in Singapore’s property history”.
It makes sense for Parkway Hospitals to buy the whole sixth level of Tong Building, provided its distance to Mount Elizabeth Medical Facility and Medical Centre, that is simply a brief step up the street.
Yap assumes the strata office market to continue its upward trajectory. “With businesses significantly seeking flexible office solutions and adapting to crossbreed job systems, strata offices are coming to be a lot more attractive than ever,” she says. “The strength of the market and its ability to meet changing requirement suggest a promising outlook for the future.”
Tong Building is a 19-storey, freehold strata-titled office complex at the edge of prime Orchard Road and Mount Elizabeth. It was built in 1978 by TG Development. Next door is Paragon shopping mall, and Mount Elizabeth Hospital and Medical Centre are behind it.
