Perennial Real Estate expanding into healthcare in China
SINGAPORE: Local property group Perennial Real Estate Holdings is making a foray into healthcare for the first time through a joint venture (JV) in China which plans to acquire and develop hospitals.
Perennial will be investing S$63 million for a 40 per cent stake in the JV while the remaining 60 per cent will be held by Guangdong Boai Medical Group Co, a subsidiary of China Boai Medical Group (BOAI), a China-based private hospital operators.
The joint venture company will then acquire Modern Hospital Guangzhou, one of the leading tumour and cancer hospitals in Guangzhou, from BOAI.
Perennial said the JV will focus on providing eight medical services at its hospitals and medical centres. They include oncology, fertility, obstetrics and gynaecology as well as plastic surgery and aesthetic medicine.
The company also said that it plans to reposition Perennial Dongzhan Mall, which is currently under development, as an international medical and healthcare hub. The mall is part of Chengdu East High Speed Railway Integrated Development.
Perennial’s Chief Executive Officer Pua Seck Guan said in a statement that the move is a “natural extension” of its real estate business. “The creation of a new asset class complements the other components within the Group’s prime large-scale integrated developments in China,” he said.
The company said it also plans to reposition its other existing portfolios of integrated developments in China to “enhance their value”.
This means that hospitals and medical centres will take up anchor leases in its developments such as Xi’an North High-Speed Railway Integrated Development and Beijing Tongzhou Integrated Development.
Picture Source: Perennial Dongzhan Mall, part of Chengdu East High Speed Railway Integrated Development, will be renamed as Perennial International Medical and Healthcare Hub, Chengdu. (Illustration: Perennial Real Estate)
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