Here's Raffles Medical's next move after failed Thong Sia building conversion

Property consultants on the rescue.

Acording to UOB Kay Hian, after Raffles Medical's unsuccessful resubmission for the conversion of the Thong Sia building into a medical centre, management has appointed a property consultant to advise on the next course of action. The options include the disposal or retention of Thong Sia as an investment property.

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Should the first option be taken, RMG is likely to enjoy a huge exceptional gain given its low acquisition cost of only S$92m (S$2,158psf). RMG’s purchase price is undemanding since medical suites at Novena were launched at S$3,588-3,828psf in early-10.

Currently, medical suites at Orchard Medical Specialists Centre and Novena Specialists Centre are going for more than S$3,000psf. Despite the Thong Sia setback, RMG remains keen on having a medical centre at Orchard Road and is on the lookout for potential sites.