Perennial explores Reit listings in China with ‘aggressive' expansion in medical, eldercare sectors
The Reits, which could be listed in Shanghai or Shenzhen, would ride on booming demand from yield-hungry investors on the mainland.
'The Chinese love this class of assets. If you go and do a check today, the Chinese Reit yield is below 5 per cent; in Singapore, it's more than 7 per cent,' said Pua in an interview at the company's one-north office.
With deposit rates under 1 per cent, Chinese investors are hunting for dividends. 'So if you give them 4 to 5 per cent (in yield), they will be very happy,' the CEO said, adding that there is demand from both retail and institutional investors.
Founded in 2009, Perennial has five healthcare-centric mega developments in China – in Chengdu, Kunming, Xi'an, Chongqing and Tianjin – and a commercial-focused one in Hangzhou, among other assets.
It also operates China's first fully foreign-owned hospital in Tianjin, has another coming up in Guangzhou, and is invested in major eldercare company Renshoutang.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Reits were introduced in China in 2021, and demand has been 'stratospheric', according to a Bloomberg report in February. There were 28 Reits listed in China last year – nearly trebling from the number in 2023 – which raised a record 64 billion yuan (S$11.4 billion).
Perennial may also consider listing its healthcare business in Hong Kong or mainland China, said Pua.
The company, which traded on the Singapore Exchange from 2014 to 2020, has no plans to pursue listings here. Pua cited liquidity and valuations as concerns, along with the fact that the majority of Perennial's business is now in China.
The company began its foray into China healthcare a decade ago with the opening of a medical hub in Chengdu. It now owns and operates more than 25,000 beds in medical and eldercare facilities in Singapore and China.
In Singapore, Perennial, together with Far East Organization, is redeveloping Golden Mile Complex. There will be medical suites, offices, retail spaces and a residential tower. The company is also heading a consortium that is redeveloping the former AXA Tower in Shenton Way.
A patient at the Perennial Rehabilitation Hospital in Tianjin. PHOTO: ST
First-mover advantage
Perennial's listing plans come on the back of big ambitions to expand in China's medical and eldercare sectors.
In late 2024, it announced the 500-bed Perennial General Hospital Tianjin, the first such facility to be fully foreign-owned in China, with a one billion yuan investment. Months later, it inked a deal to build a second fully foreign-owned hospital in Guangzhou, also with a one billion yuan investment.
Perennial is now concluding talks to open another fully foreign-owned hospital in Shanghai, said Pua.
Tianjin, Guangzhou and Shanghai are among the nine trial cities where China has allowed fully foreign-owned hospitals to operate, in a pilot announced in September 2024. The other trial cities are Beijing, Nanjing, Suzhou, Fuzhou, Shenzhen and Hainan.
Pua hopes to do projects in more than half of these nine cities. 'We think the Chinese medical (sector) is just at a very nascent stage… The market is huge, so we want to seize this opportunity. I think we have a first-mover advantage.'
He sees the Chinese authorities being supportive of private operators such as Perennial that can service the medical needs of the upper middle class segment.
The company also wants to ride on China's emerging medical tourism industry. It hopes to attract patients from Russia, Central Asia and South-east Asia – including Vietnam, Laos and Cambodia, said Pua.
He views Guangzhou as an ideal location for medical tourism, due to its good air connectivity, infrastructure and weather.
Perennial's rehabilitation facilities could also be a pull factor, with their combination of Western and traditional Chinese medicine (TCM), he added.
That said, he acknowledged that the more challenging part is attracting patients who are willing to undertake surgery, and emphasised the need to build trust and reputation.
Dr Daniel Liu, president of Perennial's general hospital in Tianjin, says the company wants to grow medical tourism in China. PHOTO: ST
Perennial's Tianjin general hospital aims to have 30 per cent of its revenue come from international patients within its first year, said its president, Dr Daniel Liu.
'Medical tourism can't yet be called an industry in China; there are some signs, but not yet. What we hope to do now is to make this cake bigger,' he said during a tour of the hospital.
Dr Liu believes that the hospital could even attract patients from the UK, where waiting times for surgeries are long. Some of China's specialised medical services – such as cardiology, orthopaedics and urology – are competitive with international peers, he said.
'Very aggressive'
Perennial is 'actually very aggressive' with its expansion plans, said Tan Bee Lan, the company's healthcare chief executive, on the sidelines of a visit to a Renshoutang facility in Shanghai.
Asked about the timing of the moves – amid global uncertainty and weak consumer spending in China – Tan said that she does not see a 'material effect', given the counter-cyclical nature of healthcare.
There is also an opportunity to secure assets at attractive valuations. 'You should take projects when no one wants to do them – that is when you get the land, the property, at a very reasonable price… This is what Perennial is doing. We're going around very aggressively, looking at suitable properties to take over,' she said.
Tan Bee Lan, Perennial's healthcare chief executive, is sanguine about macroeconomic headwinds. PHOTO: ST
Perennial also plans to apply what it has learnt in Tianjin to an upcoming Singapore project: the city-state's first private assisted-living development, for which the company won a tender in June 2023.
Said Pua: 'To be honest, it's very, very difficult to make money in Singapore because of the high real estate costs, the high labour costs… But I think being headquartered in Singapore, we thought (it would be) good to do something and (showcase) a model.'
'So this project will contain the ingredients that we have in Tianjin,' he added, citing how the development in Parry Avenue will also integrate eldercare with TCM rehabilitation and a geriatric care centre.
With the Tianjin hospital opening more doors, Pua believes that the company is two to three years 'ahead of anybody' in its expansion plans. 'I'm excited,' he said.
Perennial's key shareholders include agribusiness Wilmar International – where Pua is also chief operating officer – and Wilmar co-founder Kuok Khoon Hong.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
40 minutes ago
- Business Times
Data centres aren't sexy but essential and increasingly lucrative
With US$4.7 billion pumped into direct data centre investments in Asia-Pacific in 2024 alone, and momentum holding strong this year, investors are circling. AI and cloud computing are fuelling demand. But is this asset class really within reach for retail investors? In this episode of Money Hacks, a podcast by The Business Times hosted by Howie Lim, we find out what's driving the data centre boom and how individuals can get a piece of the pie. Daphne Tan from CMC Markets and Shun Endo from CBRE unpack the landscape, including how listed Reits especially those with 'hyperscaler' tenants like Google or Microsoft offer a way in, why modular designs are keeping things future-proof, and what to watch when it comes to power, scalability, and resilience. Why listen? Because data centres are the quiet overachievers of tech infrastructure Steady demand, long leases, and capital-sticky tenants make them a surprisingly defensive play. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Because investing doesn't always mean betting on the next app Data centres are how the internet stays on. Reits let you invest in the plumbing not just the party. Because risks exist—but they're being managed smartly Think disaster planning, power redundancy, and upgrades without full rebuilds. Because with AI exploding, someone's got to house the servers And chances are, it's one of the players mentioned in this episode. Money Hacks is the flagship personal finance podcast from The Business Times, hosted by Howie Lim. You can listen to past episodes including recent takes on gold, ETFs, and long-term investing on Spotify, Apple Podcasts, or at Have feedback or episode ideas? Drop the team a note at btpodcasts@ --- Written and hosted by: Howie Lim (howielim@ With Daphne Tan, head of business development, CMC Markets and Shun Endo, head of data centre, capital markets, Asia Pacific, CBRE Edited by: Howie Lim & Claressa Monteiro Produced by: Howie Lim & Chai Pei Chieh A podcast by BT Podcasts, The Business Times, SPH Media --- Follow BT Money Hacks podcasts every Monday: Channel: Amazon: Apple Podcasts: Spotify: YouTube Music: Website: Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party's products and services. Please consult professional advisors for independent advice. --- Discover more BT podcast series: BT Correspondents: BT Market Focus at: BT Podcasts at: BT Branded Podcasts at: BT Lens On:
Straits Times
6 hours ago
- Straits Times
US, China to resume tariff talks in effort to extend truce by 90 days
Find out what's new on ST website and app. US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng will lead tariff talks on July 28, in Stockholm. STOCKHOLM – Senior US and Chinese negotiators will meet in Stockholm on July 28 to tackle longstanding economic disputes at the centre of the countries' trade war, aiming to extend a truce keeping sharply higher tariffs at bay. The South China Morning Post reported on July 27 that the two sides are expected to agree to extend the truce by three more months. China is facing an Aug 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached a preliminary deal in June to end weeks of escalating tit-for-tat tariffs. Without an agreement, global supply chains could face renewed turmoil from duties exceeding 100 per cent. The Stockholm talks, led by US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng, take place a day after European Union chief Ursula von der Leyen meets Mr Trump at his golf course in Scotland to try to clinch a deal that would likely see a 15 per cent baseline tariff on most EU goods. Trade analysts on both sides of the Pacific say the discussions in the Swedish capital are unlikely to produce any breakthroughs but could prevent further escalation and help create conditions for Mr Trump and Chinese President Xi Jinping to meet later in 2025. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia H20 AI chips and other goods halted by the United States. Top stories Swipe. Select. Stay informed. Singapore Sewage shaft failure linked to sinkhole; PUB calling safety time-out on similar works islandwide Singapore Tanjong Katong Road sinkhole did not happen overnight: Experts Singapore Workers used nylon rope to rescue driver of car that fell into Tanjong Katong Road sinkhole Asia Singapore-only car washes will get business licences revoked, says Johor govt World Food airdropped into Gaza as Israel opens aid routes Sport Arsenal beat Newcastle in five-goal thriller to bring Singapore Festival of Football to a close Singapore Benchmark barrier: Six of her homeschooled kids had to retake the PSLE Asia S'porean trainee doctor in Melbourne arrested for allegedly filming colleagues in toilets since 2021 So far, the talks have not delved into broader economic issues. These include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. 'Stockholm will be the first meaningful round of US-China trade talks,' said Mr Bo Zhengyuan, Shanghai-based partner at China consultancy firm Plenum. Deals, deals, deals Mr Trump has been successful in pressuring some other trading partners, including Japan, Vietnam and the Philippines , into deals accepting higher US tariffs of 15 to 20 per cent. He said there was a 50-50 chance that the US and the 27-member European Union could also reach a framework trade pact, adding that Brussels wanted to 'make a deal very badly'. Two of Mr Trump's top trade officials, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, will attend the Scotland talks and then travel to Stockholm. Analysts say the US-China negotiations are far more complex and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on US industries. Trump-Xi meeting? In the background of the talks is speculation about a possible meeting between Mr Trump and Mr Xi in late October. Mr Trump has said he will decide soon whether to visit China in a landmark trip to address trade and security tensions. A new flare-up of tariffs and export controls would likely derail any plans for a meeting with Mr Xi. 'The Stockholm meeting is an opportunity to start laying the groundwork for a Trump visit to China,' said Ms Wendy Cutler, vice-president at the Asia Society Policy Institute. Mr Bessent has already said he wants to work out an extension of the Aug 12 deadline to prevent tariffs snapping back to 145 per cent on the US side and 125 per cent on the Chinese side. Still, China will likely request a reduction of multi-layered US tariffs totaling 55 per cent on most goods and further easing of US high-tech export controls, analysts said. Beijing has argued that such purchases would help reduce the US trade deficit with China, which reached US$295.5 billion (S$379 billion) in 2024. China is currently facing a 20 per cent tariff related to the US fentanyl crisis, a 10 per cent reciprocal tariff, and 25 per cent duties on most industrial goods imposed during Mr Trump's first term. Mr Bessent has also said he would discuss with Mr He the need for China to rebalance its economy away from exports toward domestic consumer demand. The shift would require China to put an end to a protracted property crisis and boost social safety nets to encourage household spending. Mr Michael Froman, a former US trade representative during former president Barack Obama's administration, said such a shift has been a goal of US policymakers for two decades. 'Can we effectively use tariffs to get China to fundamentally change their economic strategy? That remains to be seen,' said Mr Froman, now president of the Council on Foreign Relations think-tank. REUTERS
Business Times
10 hours ago
- Business Times
Singtel's NCS seeks to hire up to 200 fresh graduates this year
[SINGAPORE] NCS will remain committed to hiring between 150 and 200 fresh graduates this year, said chief executive officer Ng Kuo Pin. This is similar to previous hiring numbers. The hires will come from different educational backgrounds, and not just solely those with artificial intelligence (AI) expertise, Ng added. In an exclusive interview with The Business Times during the company's flagship Impact Forum held on Jul 10, Ng reiterated that the hiring strategy is in line with NCS' talent development pipeline, which aims to develop tech graduates with a ground-up approach. 'This is not like soccer, where you buy the best striker, best midfielder, the best goalkeeper,' Ng added, emphasising that the technological services industry performs more like a team sport. Development backed by strong financial earnings Ng believes that NCS' rising revenue will enable it to continue hiring at a stable rate, citing the NCS CEO Review for FY 2025, which showed revenue grew 5 per cent from a year ago to S$2.98 billion. Parent Singtel's group revenue came in at S$14.1 billion for FY2025. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up NCS' 39 per cent growth in annual earnings before interest and tax is the fastest to date, added the report. The sharp increase was attributed to improved delivery margins and effective cost management. On Jul 10, NCS pledged to invest S$130 million over the next three years to further develop AI across the Asia-Pacific region. Part of the investment will be used to train its employees to be AI-enabled. 'If we don't train our people, how can we do good work for our clients?' said Ng. With subpar work, it is impossible for NCS to expand beyond Singapore, and we can forget about being in the 'top league', he remarked. However, Ng acknowledged that NCS ends up being a 'poaching ground' for IT talent in the market, meaning that its employees often tend to go to their competitors. 'You can't stop people from leaving,' he said. But NCS still strives to keep its best talent. 'Some of the talents that leave will join our competitors, but some will also become our clients,' Ng said. 'We have played a part in building the industry.' Expanding regionally Ng seeks to grow the NCS presence beyond the Republic across different countries in the Asia-Pacific region. In March, NCS expanded into the Philippines through a joint venture with Globe Telecom. It said that this will add 1,200 technology professionals to its workforce. 'We want to be very clear that we want to be a Pan-Apac player,' Ng said, noting that other technology services companies focus on the North-America and Europe market, and are not dominant players in Apac. Ng added that in South-east Asia, NCS is in the midst of both the 'Western stack' and 'Chinese stack', meaning that clients in this region will have options to utilise different AI models from different regions such as the US and China. 'I believe there will be a diversity of AI in South-east Asia, and that will bring a lot of opportunities to everybody,' he said. When asked about the rising geopolitical tension, particularly the impact of US President Donald Trump's widespread tariffs, Ng is optimistic that NCS will remain strong. He noted that as a technology services provider, NCS is not directly affected by increasing tariffs – although there might be an indirect impact on some of its products that include hardware which might be hit by the tariffs. 'That shouldn't stop companies like (NCS) from being able to tap onto the growing demands of AI, growing demands of tech,' he added. Ng remains confident that as long as the companies and economies are growing, then NCS will be 'okay'.
