A local real estate developer has ventured into China's eldercare and retirement home sector.

Perennial Real Estate Holdings said yesterday that it had signed a memorandum of understanding with two Chinese companies - Shanghai Summit Property Development and Shanghai RST Chinese Medicine - to set up a joint venture.

The company will invest 150 million yuan (S$33 million) to operate an eldercare and retirement home in Chengdu, capital of Sichuan province in south-west China.

The home will be part of an integrated development adjacent to the Chengdu East High Speed Railway station.

Perennial and Shanghai Summit jointly own the integrated development, while Shanghai RST Chinese Medicine is one of the largest private eldercare home operators in Shanghai.

This is Perennial's first investment in eldercare and retirement homes in China and follows its move into the China healthcare industry last July when a joint venture was announced to run hospital services.

Chengdu Xiehe International Eldercare and Retirement Home, as the facility is called, will further strengthen Perennial's healthcare strategy, establish another recurring income stream and create more value for the real estate in the integrated development, said chief executive Pua Seck Guan.

The home will leverage on the professional medical care available at Perennial International Health and Medical Hub, to be anchored by Chengdu Parkway Health, within the same development, he added.

The joint venture partners will master lease no less than 85,000 square metres in gross floor area under Phase 1 at the integrated development.

The home will cater to those who are independent, as well as those requiring round-the-clock professional care and those who need special care such as medical treatment or rehabilitation.

It will be positioned as a premium brand targeted at the middle-income elderly and retiree market and is expected to open next year.