Raffles Medical Group vies for private hospital site in HK

The tender results for the 27,500 sq m site will be announced early 2013.

According to OCBC, Raffles Medical Group (RMG) announced that it has submitted a tender called by the Government of Hong Kong Administrative Region for the development of a private hospital. The deadline for the tender submission was 12 noon on 27 Jul 2012. The site for tender is Aberdeen Inland Lot No. 458 (~27,500 square meters) at Wong Chuk Hang, Hong Kong.

Here's more from OCBC:

RMG is aiming to tap on the increasing needs and demand of the Hong Kong community for good quality specialist and hospital services. Hong Kong’s Food and Health Bureau (FHB) highlighted that there is currently an imbalance between the public and private sectors in hospital services. From a strategic standpoint, we are positive on RMG’s decision to expand its overseas operations, given that it has predominantly been just a Singapore healthcare play. However, it is too premature to fully evaluate this bid until pricing details are known (possibility of occurrence of ‘winner’s curse’).

In terms of awarding the tender, a 70% weighting is given to the service quality aspect and 30% to the land premium aspect. We opine that RMG would fare well for the former, given its established track record. According to FHB’s website, the tender results are expected to be announced in early 2013.