Sale Tong Building Floor Parkway Hospitals Solidifies Orchard Road%E2%80%99S Position Medical Hub Savills
Last week, EdgeProp Singapore reported that the entire sixth floor of Tong Building on Orchard Road was sold for a record-breaking $31.33 million, equivalent to an astounding $4,562 per square foot. The transaction was completed on September 3, as evidenced by a caveat.
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The sale was facilitated by Yap Hui Yee, the executive director of investment sales and capital markets at Savills Singapore. The buyer of the 6,867 square foot strata office floor was none other than Parkway Hospitals Singapore, a subsidiary of Bursa Malaysia-listed private healthcare provider IHH Healthcare.
Savills revealed in a press release that Parkway Hospital’s purchase of the freehold office floor aligns with the company’s expansion plans. The strategic location of Tong Building, which is just a short walk from Mount Elizabeth Hospital (also owned by IHH Healthcare), makes it an ideal choice for the hospital operator.
Moreover, Parkway Hospitals managed to secure a rare medical change of use approval for the floor, indicating their intention to offer medical services in the building. This is a significant milestone for the Singapore property market, where designated medical facilities are in short supply. According to Yap, there are currently fewer than 2,000 medical suites available in the country, with approximately half of them located in hospital-supported buildings. This leaves only around 1,000 medical units available for acquisition in the open market.
Savills believes that this deal cements Orchard Road’s status as a prominent hub for medical services, with the shopping district being regarded as the largest medical hub in Singapore. The consultancy also points out the growing trend of medical institutions expanding into key commercial areas, driven by the increasing demand for healthcare services. Yap notes that this expansion of Parkway Hospital in the area reflects this trend and is poised to benefit from the growth and demand in the medical industry.
In conclusion, Yap states that this landmark acquisition by Parkway Hospitals solidifies Orchard Road’s role as a central player in Singapore’s healthcare landscape and is a promising investment opportunity.
