SINGAPORE - Mainboard-listed Perennial Real Estate Holdings has entered into a joint venture with Guangdong Boai Medical Group on July 2 to jointly develop and manage medical service businesses in China.
The real estate developer with its headquarter in Singapore, will hold a 40 per cent stake in the joint venture entity for RMB286.7 million (approximately S$63.0 million). Guangdong Boai Medical Group, a subsidiary of one of China's largest private hospital and medical services operators, China Boai Medical Group, will hold the remaining 60 per cent stake.
The joint venture will acquire its first operational medical business, Modern Hospital Guangzhou, one of the leading tumour and cancer hospitals in Guangzhou, Perennial said in a statement on Friday.
It also has in place a growth pipeline with immediate access to Perennial Real Estate Holding's greenfield and or completed integrated developements as well as Boai's existing portfolio of hospitals and medicals centres and future acquisition pipeline across China.
The collaboration will be focusing on eight core medical fields - oncology; fertility; plastic surgery; aesthetic medicine; orthopaedics; paediatrics; ear, nose, throat and eye specialty medicinie; dentistry and cardiology and cardiovascular surgery.
Mr Pua Seck Guan, Perennial chief executive officer, said the joint venture will set the stage for the group's strategic expansion into the rapidly growing medical industry in China which is "driven by rapid urbanisation, growing affluence of the Chinese consumers, favourable regulatory changes and aging population".
Dr Wong Weng Hong, a healthcare industry veteran with over 20 years of experience in setting up, acquiring and managing medical assets in Singapore and China, will develop and scale up Perennials' new engine of growth, said Mr Pua.
Currently, Perennial's integrated developments comprise largely retail, residential, office and hotel components. As part of its new growth strategy in China, it will reposition Perennial Dongzhan Mall, part of the Chengdu East High-Speed Railway Integrated Development and currently under-development, from a retail mall to an international medical and healthcare hub.
The mall will be renamed Perennial International Health and Medical Hub and be positioned as the first predominantly-healthcare cum retail integrated development in Chengdu and Sichuan.
With a gross floor area of 280,000 square metres, it will hold an international hospital, medical suites, and complemented by healthcare and wellness-related services.