Sale of Tong Building floor to Parkway Hospitals solidifies Orchard Road’s position as medical hub: Savills

The offer was agented by Yap Hui Yee, managing director of investment sales and capital industry at Savills Singapore. The 6,867 sq ft strata office flooring was sold to Parkway Hospitals Singapore, a member of Bursa Malaysia-listed exclusive medical provider IHH Healthcare.

Recently, EdgeProp Singapore showed that the whole sixth floor of Tong Building on Orchard Roadway was yielded $31.33 million, or a record $4,562 psf, based upon a Sept 3 sign.

Savills claimed in an announcement that Parkway Medical facility’s procurement of the freehold office story aligns with its development plannings. The Tong Property is a quick stroll from Mount Elizabeth Medical Facility, which is owned and operate by IHH Healthcare.

“Parkway’s acquisition is poised to take advantage of the continuous development and demand in the health-related sector, reinforcing Orchard Street’s role as a core player in Singapore’s medical care landscape,” states Yap.

The medical center manager even acquired an unusual medical change of usage authorization for the level, in which it intends to provide clinical services. Savills’ Yap notes that areas marked for clinical purpose continue to be limited in Singapore. “There are less than 2,000 health-related suites in Singapore, with about 50% located just within hospital-supported properties,” she adds. This leaves around 1,000 medical units offered on the free market.

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According to Savills, the offer strengthens Orchard Road’s setting as a hub for health care services, with the consultancy defining the shopping district as Singapore’s largest clinical hub. It adds that Parkway Hospital’s growth in the area reflects a developing fad of medical institutions increasing into crucial commercial areas, sustained by climbing need for health services.