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Business Times
9 hours ago
- Business
- Business Times
Singapore's Perennial setting up 500 million yuan general hospital in Shanghai
[SINGAPORE] Singapore-based real estate and healthcare company Perennial Holdings announced on Thursday (Jul 31) that it has entered into a partnership with the Lujiazui Administrative Bureau of the China (Shanghai) Pilot Free Trade Zone and Shanghai Lujiazui, to establish the first wholly foreign-owned tertiary general hospital in Shanghai. Perennial General Hospital Shanghai's total investment cost is expected to amount to 500 million yuan (S$90.2 million), with a planned capacity of 500 beds. A foreign medical investment company will be incorporated in the Lujiazui District, Shanghai, to establish the hospital, said Perennial Holdings. The hospital will feature a team of medical experts from China and other countries. Aside from general medical areas such as internal medicine, surgery and health screening, it will house centres of excellence with specialisations including orthopaedics, oncology, cardiovascular diseases and otolaryngology. The healthcare company said that the hospital will be built according to international standards, integrating advanced medical equipment and technology, as well as global service standards. It will also be designed with a garden-style environment, serve as a platform for global medical exchange, and foster collaboration and sharing of clinical expertise, the group added. This move reaffirms the long-term confidence that Perennial Holdings has in China's healthcare market, said executive chairman and chief executive Pua Seck Guan. 'Shanghai is witnessing a burgeoning demand for premium and personalised medical services. The Perennial General Hospital Shanghai will leverage its strategic location to serve both local residents and expatriates in the city, and introduce innovative medical treatments and packages for high-net-worth international clients to support the growth of Shanghai's medical tourism sector,' he added. Perennial Holdings has five healthcare-centric transit-oriented developments typically integrating medical care, eldercare and hospitality components, connected to high-speed railway stations located in Tianjin, Kunming, Chengdu, Xi'an and Chongqing in China. It manages and operates over 25,000 beds in medical and eldercare facilities, comprising about 16,000 operational beds and over 9,000 beds in the pipeline, across 15 cities in China and Singapore. It is set to launch a private integrated rehabilitation and traditional Chinese medicine sanctuary in Singapore, the group said.
Business Times
9 hours ago
- Business
- Business Times
Perennial Holdings enters partnership to establish hospital in Shanghai with 500 million yuan investment
[SINGAPORE] Singapore-based real estate and healthcare company Perennial Holdings announced on Thursday (Jul 31) that it has entered into a partnership with the Lujiazui Administrative Bureau of the China (Shanghai) Pilot Free Trade Zone and Shanghai Lujiazui, to establish the first wholly foreign-owned tertiary general hospital in Shanghai. Perennial General Hospital Shanghai's total investment cost is expected to amount to 500 million yuan (S$90.2 million), with a planned capacity of 500 beds. A foreign medical investment company will be incorporated in the Lujiazui District, Shanghai, to establish the hospital, said Perennial Holdings. The hospital will feature a team of medical experts from China and other countries. Aside from general medical areas such as internal medicine, surgery and health screening, it will house centres of excellence with specialisations including orthopaedics, oncology, cardiovascular diseases and otolaryngology. The healthcare company said that the hospital will be built according to international standards, integrating advanced medical equipment and technology, as well as global service standards. It will also be designed with a garden-style environment, serve as a platform for global medical exchange, and foster collaboration and sharing of clinical expertise, the group added. This move reaffirms the long-term confidence that Perennial Holdings has in China's healthcare market, said executive chairman and chief executive Pua Seck Guan. 'Shanghai is witnessing a burgeoning demand for premium and personalised medical services. The Perennial General Hospital Shanghai will leverage its strategic location to serve both local residents and expatriates in the city, and introduce innovative medical treatments and packages for high-net-worth international clients to support the growth of Shanghai's medical tourism sector,' he added. Perennial Holdings has five healthcare-centric transit-oriented developments typically integrating medical care, eldercare and hospitality components, connected to high-speed railway stations located in Tianjin, Kunming, Chengdu, Xi'an and Chongqing in China. It manages and operates over 25,000 beds in medical and eldercare facilities, comprising about 16,000 operational beds and over 9,000 beds in the pipeline, across 15 cities in China and Singapore. It is set to launch a private integrated rehabilitation and traditional Chinese medicine sanctuary, the group said.
Business Times
25-06-2025
- Business
- Business Times
Assisted living in Singapore: Companies face steep costs, but innovation is still possible
[SINGAPORE] Assisted living facilities – which enable elderly folk to live semi-independently with elderly-friendly amenities and care services – are a tough business in land-scarce Singapore. But there is still room for more private operators to pilot new models and innovate. Healthcare and real estate company Perennial Holdings is investing in this space. In 2023, it secured a S$72 million tender to build an assisted-living development in Parry Avenue, with residents expected to move in by the first quarter of 2026. The project will comprise 200 assisted-living apartments, a nursing home with 100 beds, a wellness clubhouse and a geriatric care centre. It is 'very, very difficult to make money' with steep land and labour costs, Perennial chief executive Pua Seck Guan conceded in a recent interview with The Business Times. But the company decided that it would still be worth showcasing such a concept in its home market. Perennial has already built numerous assisted living facilities in China, including a 43,000 square-metre Alzheimer's care village in Xi'an, and wants to apply its learnings here. The need for assisted living facilities in Singapore is clear, with more elderly living longer and staying mobile. Many seniors do not have the high care needs for which traditional nursing homes are meant, Dr Belinda Wee, director of the Assisted Living Facilities Association of Singapore, previously told BT. She co-founded assisted living provider St Bernadette Lifestyle Village in 2015, which runs nine 'villages' for elderly with over 100 beds in Singapore. The assisted-living industry has certainly come a long way from a decade ago, when the concept was still untested. In 2014, The Hillford, a 60-year-leasehold condominium marketed as a retirement resort, ironically attracted many younger buyers as there were no age restrictions. Today, assisted-living developments are more intentionally planned, especially with the government stepping in with Community Care Apartments (CCA) at locations such as Bukit Batok and Queenstown. These flats come with leases ranging from 15 to 35 years, and a service package with 24-hour emergency aid, communal activities and basic health checks. 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 But even as the government becomes a key supplier of assisted living units, there is still a need for a mix of both public and private options. The private sector can cater to demand from more niche or high-end segments, relieving pressure on the demand for CCA units. The presence of more private operators can also spur innovation in designing better services to complement the living arrangements. For instance, there is a need for more innovation around designing assisted living facilities for seniors with dementia, with the number of patients projected to hit 152,000 by 2030. Those in the earlier stages of dementia may still wish to live independently in the familiarity of their own neighbourhoods, and can possibly do so if they have the right assisted living facilities and community support. While private sector interest in assisted living is still muted, the outlook is promising. The Parry Avenue tender, for instance, attracted four bids from three developers, all of which the authorities deemed as acceptable. This showed that 'there is no lack of expertise and creativity by market players to grow this niche segment', one expert told The Straits Times. Perhaps it is not a question of whether the private sector will eventually step into the assisted living market here, but when, and what unique business models companies can come up with to balance innovation with profitability.
Business Times
15-06-2025
- Business
- Business Times
Perennial explores Reit listings in China with ‘aggressive' expansion in medical, eldercare sectors
[SINGAPORE] Property player Perennial Holdings is exploring real estate investment trust (Reit) listings in China – one for commercial properties and another for healthcare assets, the company's chief executive, Pua Seck Guan, told The Business Times. 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.
Straits Times
27-05-2025
- Business
- Straits Times
Perennial to invest $178.9 million to open two hospitals in Guangzhou
Perennial Holdings will lease around 105,000 sq m in Yuesheng Plaza in China and invest $178.9 million to establish two healthcare institutions. PHOTO: PERENNIAL HOLDINGS Perennial to invest $178.9 million to open two hospitals in Guangzhou SINGAPORE – Integrated healthcare and real estate player Perennial Holdings on May 27 announced that it has entered into an agreement with Guangzhou Metro Group to establish a tertiary general hospital in Guangzhou, China. This will be Perennial's second wholly foreign-owned hospital in China, after it opened the 500-bed Perennial General Hospital Tianjin earlier in 2025. It will also be opening a specialist hospital, which will not be wholly foreign-owned. A spokesperson from Perennial told The Business Times that it may partner a specialist medical group to establish the specialist hospital. Under the agreement, the Singapore-based group will lease around 105,000 sq m in the south-east tower of Yuesheng Plaza, adjacent to the Baiyun high-speed railway (HSR) station, and invest around one billion yuan (S$178.9 million) to establish the two healthcare institutions. The two Guangzhou facilities will have a total planned capacity of more than 600 beds. The two will use a shared medical facilities and services concept, allowing doctors and medical groups to focus on providing medical consultations and treatments without investing in medical facilities and services. The shared medical platform will be provided and managed by Perennial, and will include facilities such as a clinical laboratory and advanced operating theatres. This concept is also being used in Perennial's Tianjin hospital. 'The model has been proven to offer convenience and cost efficiency to doctors and medical groups, allowing them to grow and scale their practices across Perennial's healthcare-centric HSR transit-oriented developments,' said the group. The spokesperson told BT: 'We also have some specialist medical groups (that) are keen to be co-located with us to leverage our shared medical platform and our extensive network of patients and doctors of various medical disciplines.' Work on the Guangzhou hospitals is expected to commence in July 2025 and be completed within one year. Mr Pua Seck Guan, executive chairman and chief executive of Perennial, noted: 'Guangzhou is a destination of choice for medical care. Our hospitals' strategic location in Guangzhou Baiyun's city centre and their proximity to the Baiyun HSR station provide access to a population catchment of over 100 million across the Greater Bay Area.' These hospitals come after China announced that it would permit wholly foreign-owned hospitals to be set up in nine trial regions – Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen and Hainan – aimed at diversifying medical services for locals and foreigners. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
