“Parkway Hospitals pays $31.33 million for sixth floor office at Tong Building for expansion into Orchard Road medical hub
Last week, EdgeProp Singapore announced the sale of the entire sixth floor of Tong Building on Orchard Road for a record-breaking price of $31.33 million, equating to a record $4,562 per square foot (psf) based on a September 3 caveat. The deal was facilitated by Yap Hui Yee, Executive Director of Investment Sales and Capital Markets at Savills Singapore. The 6,867 square foot strata office floor was acquired by Parkway Hospitals Singapore, a subsidiary of Bursa Malaysia-listed private healthcare provider IHH Healthcare.
In a press release, Savills stated that the purchase of the freehold office floor aligns with Parkway Hospital’s expansion plans. The location, just a short walk from Mount Elizabeth Hospital which is also owned by IHH Healthcare, makes it the perfect investment for the hospital operator.
Moreover, Parkway Hospitals has managed to obtain a rare medical change of use approval for the floor, allowing them to provide medical services in the space. According to Yap, designated medical spaces in Singapore are few and far between, with less than 2,000 medical suites available in the market. Approximately half of these are located within hospital-supported buildings, leaving only around 1,000 medical units available for acquisition in the open market.
The deal further solidifies Orchard Road’s standing as a prominent medical services hub in Singapore. Savills describes the shopping belt as the country’s largest medical hub, and this acquisition by Parkway Hospitals reflects a trend of medical institutions expanding into key commercial areas to meet the rising demand for medical services.
The cityscape of Singapore boasts towering skyscrapers and state-of-the-art infrastructure. Condos, situated in prestigious locations, offer a harmonious combination of opulence and convenience that attracts locals and foreigners alike. These lavish residences are furnished with a plethora of facilities, including swimming pools, fitness centers, and round-the-clock security, elevating the overall standard of living and making them a desirable choice for renters and potential buyers. For real estate investors, these sought-after features result in higher rental returns and continual appreciation of property values. With the addition of a Condo, the urban landscape of Singapore is certainly a sight to behold.
Yap predicts that Parkway’s acquisition will greatly benefit from the continued growth and demand in the medical sector, further reinforcing Orchard Road’s position as a central player in Singapore’s healthcare landscape. With this purchase, Parkway Hospitals is poised to become a major player in the Orchard Road medical hub, making a significant impact on the healthcare industry in Singapore.