Perennial Real Estate Holdings prepares for healthcare boon

Its medical hub is now 85% occupied.

Perennial Real Estate Holdings (PREH) is approaching its vision as a medical hub that it can leverage on rising healthcare demand in China and Singapore, DBS Equity Research said.

According to a report, most of the major takeaways from its results were the achieved 85% committed occupancy in Chengdu medical hub, the setup of healthcare fund, to deploy within 3 years, and the approval to designate plot 5 in Xi’an development for medical usage.

The Perennial International Health and Medical Hub has recorded a committed occupancy of around 85%, compared to around 65% as at end-3Q2017.

New mini-anchor tenants include Chengdu BGI Perennial Genomics Diagnostic Imaging Centre, a JV between BGI Genomics and Perennial.

One of the mini anchor tenants, Care Alliance Rehabilitation Hospital of Chengdu has soft-opened in Q4 whilst other mini-anchor and anchor tenants are expected to start operations by the second half of 2018.

Fitting out works for Chengdu Xiehe Home is ongoing and on track to commence operations in one tower from Q2 in 2018.

Here's more from DBS Equity Research:

PREH recently announced the establishment of US$1.2b healthcare fund. Management expects its first close of US$500m to be deployed by this year while the rest to be deployed within 3 years.

The total number of operational beds stood at 3,577 as at December 2017. It currently has a committed pipeline of 7,750 beds and potential pipeline of more than 13,500 beds. Renshoutang continues to expand via its three-pronged strategy - leasing, public-private-partnership and acquisition models.