Sale of Tong Building floor to Parkway Hospitals solidifies Orchard Road’s position as medical hub: Savills
According to Savills, the deal hardens Orchard Road’s setting as a centre for clinical assistances, with the consultancy describing the shopping district as Singapore’s most extensive health care center. It adds that Parkway Hospital’s growth in the place shows a progressing trend of medical organizations expanding right into essential business areas, supported by climbing demand for medical services.
“Parkway’s purchase is stood to benefit from the ongoing development and demand in the medical industry, strengthening Orchard Street’s part as a main participant in Singapore’s healthcare landscape,” claims Yap.
The offer was brokered by Yap Hui Yee, executive supervisor of investment sales and funding markets at Savills Singapore. The 6,867 sq ft strata office floor was marketed to Parkway Hospitals Singapore, a member of Bursa Malaysia-listed nonpublic medical company IHH Healthcare.
Last week, EdgeProp Singapore declared that the entire 6th floor of Tong Building on Orchard Road was yielded $31.33 million, or a report $4,562 psf, based upon a Sept 3 caveat.
The medical center operator even obtained an uncommon medical change of usage permission for the floor, where it plans to give health support services. Savills’ Yap notes that rooms marked for medical usage remain scarce in Singapore. “There are fewer than 2,000 health-related suites in Singapore, with about 50% found just within hospital-supported premises,” she adds. This leaves around 1,000 medical units offered on the free market.
Savills stated in an announcement that Parkway Hospital’s acquisition of the freehold workplace floor lines up with its development plannings. The Tong Property is a short walk from Mount Elizabeth Medical Facility, which is managed by IHH Healthcare.
