Will Perennial Real Estate’s deal with IHH jumpstart its healthcare ambitions?

The deal could signal better things to come.

The real estate firm caught a big fish healthcare company hook, line, and sinker with its lease agreement with IHH Healthcare. Analysts are also saying there’s more to the deal than securing a notable healthcare anchor tenant, as it could mean reeling in bigger fishes in the future.

According to analysts from CIMB, Perennial Real Estate has entered into an anchor lease agreement with IHH Healthcare BHD and its China JV partner to lease 48,000 sqm of leasable area at the Perennial International Health and Medical Hub in Chengdu.

“The IHH JV plans to operate a 350-bed hospital, its first tertiary facility in Western China. The deal is subject to the IHH JV obtaining the necessary government and regulatory approvals to operate the hospital,” CIMB said.

Aside from securing a key lease from an established healthcare operator, CIMB says the deal could also attract other complementary healthcare and wellness-related services.

Expected to be operational in the second half of 2017, ParkwayHealth Chengdu Hospital will offer specialised care and services such as obstetrics and gynaecology (O&G), paediatrics, cardiology, orthopedics, ophthalmology and internal medicine.

IHH management says the hospital will complement its presence in China and allow it to move up the value chain in a key growth market.

“[The hospital would also] enable it to tap into the rapidly-rising demand for quality healthcare in the Western China region,” the report said.