Perennial Real Estate Holdings' 45 per cent-owned joint venture is making a 2.7 billion yuan (S$540 million) investment in an integrated development next to Tianjin South high-speed railway (HSR) station in China, the group announced on Friday.
The joint venture, Perennial HC Holdings, was awarded the tender to develop the 76,900 sq m site in Tianjin at a price of 718 million yuan, with a tenure of 40 years.
The site will be developed into a regional healthcare and commercial hub serving Beijing, Tianjin and Hebei. With 307,500 sq m in total gross floor area (GFA), the project is expected to comprise a general hospital, a women's and children's hospital, eldercare facilities supported by a geriatric hospital, hotels, and complementary retail and healthcare-related trades.
It is expected to start operations progressively from 2022 onwards.
This is the joint venture's first asset and Perennial's third high-speed rail healthcare and commercial integrated development in China.
Said Perennial chief executive officer Pua Seck Guan: "Together with our two existing HSR projects in Chengdu and Xi'an, Tianjin South HSR Integrated Development increases our HSR portfolio's total GFA to approximately 2.5 million sq m.
"This brings us a step closer to potentially owning up to eight HSR projects of over four million sq m, as we establish ourselves as the dominant market player with the largest HSR portfolio."
Perennial is an integrated real estate and healthcare company focusing on large-scale mixed-use developments, with a presence in China, Singapore, Malaysia, Indonesia and Ghana. Its healthcare business is focused mainly on China.
Perennial shares rose half a cent to close at 81 cents on Friday.