Perennial JV arm invests $564.3m for integrated hub in China

It will soon cater to the mega-region integrated by an HSR in Tianjin.

Perennial Real Estate will develop a one-stop health care and commercial hub for $564.3m (RMB2.7b) in Tianjin, an announcement revealed.

The local government of Xiqing District in Tianjin has awarded the tender of three plots of land to the firm’s joint venture (JV) vehicle for RMB718m ($150.3m). These three plots of land are adjacent to the Tianjin South High-Speed Railway (HSR) Station in Xiqing District.

With its total land area of around 76,900 sq m, the site will be developed into a one-stop regional healthcare and commercial hub with medical care, eldercare, hospitality, and retail, the development is set to be part of the megaregion integrating Beijing, Tianjin, and Hebei in Northeast China.

The said development is the JV’s debut project.

“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,” Perennial CEO Pua Seck Guan noted. “This brings us a step closer to potentially owning up to eight HSR projects of over 4 million sqm.”

The site is accessible to Beijing and Shanghai as the Tianjin South HSR Station is an approximate 30-minute HSR train ride to Beijing South HSR Station whilst Shanghai Hongqiao is a four-hour train ride.

In addition, the development is also situated approximately 25 km from the Tianjin Binhai International Airport, and 94 km from Beijing Daxing International Airport, which is eyed for launching in 2019.

The surrounding population in the area is expected to grow by at least 25%. Moreover, daily traffic at Tianjin South HSR Station is projected to jump by more than threefold from 17,000 commuters in 2017 to between 60,000 and 80,000 commuters daily after the expansion of the station to serve the upcoming Beijing-Tianjin-Shanghai HSR Line 2 and Tianjin-Xiong’an HSR Line.