Singapore’s Perennial Real Estate expands into healthcare with China venture
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Singapore’s Perennial Real Estate Holdings said it would expand into healthcare for the first time through a joint venture in China that will buy and develop hospitals as well as medical service businesses.
Seeking to take advantage of China’s strong demand for healthcare, Perennial said it will buy a 40 percent stake in a venture for about S$63 million ($47 million). The remaining 60 percent will be held by a subsidiary of China Boai Medical Group, a Chinese hospital operator.
The company also said a mall it was building near the Chengdu East high-speed railway station would now become a healthcare hub in addition to a retail shopping centre. ($1 = 1.3478 Singapore dollars)
Questions & Answers
Q.Which company is Perennial Real Estate partnering with for this venture?
Which company is Perennial Real Estate partnering with for this venture?
Perennial Real Estate is partnering with a subsidiary of China Boai Medical Group. This group is identified as a Chinese hospital operator in the article.
Q.What is the primary motivation for Perennial Real Estate expanding into healthcare?
What is the primary motivation for Perennial Real Estate expanding into healthcare?
The primary motivation is to take advantage of China's strong demand for healthcare. Perennial aims to buy and develop hospitals and medical service businesses there.
Q.How much is Perennial Real Estate investing for its stake in the new venture?
How much is Perennial Real Estate investing for its stake in the new venture?
Perennial Real Estate is investing approximately S$63 million for its 40 percent stake in the joint venture. This amount is equivalent to about $47 million US dollars.
Q.How will Perennial's existing projects be affected by this new healthcare focus?
How will Perennial's existing projects be affected by this new healthcare focus?
A mall Perennial was building near the Chengdu East high-speed railway station will now become a healthcare hub. It will operate alongside its original purpose as a retail shopping centre.
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