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Tag: Perennial

  • Perennial hints at changes afoot at Capitol Singapore

    Perennial hints at changes afoot at Capitol Singapore

    Some changes could be afoot at Capitol Singapore after it has been hit with a depressed retail environment. Landlord Perennial Real Estate on Friday (Feb 5) said it is looking at ways to help tenants.

    CEO of Perennial Real Estate Holdings Pua Seck Guan, said: “The retail sector is not easy now, because a lot of retailers are faced with the problem of labour shortage and also in this volatile market.

    “As a landlord, we therefore have to adopt a strategy to find the right tenant and a win-win rental structure, and some of the rentals we may have to get it on a turnover basis rather than insist on a very high base rent.”

    The announcement comes as Capitol Singapore integrated development is edging closer to completion. The 157-room The Patina hotel has been completed, although it has not yet opened its doors. Meanwhile, the luxury Eden Residences expects to receive its Temporary Occupation License by end-February. The retail complex has been opening in phases since May 2015.

    Concerns about Capitol’s retail tenants aside, Perennial presented a strong report card for the three months to December at a briefing on Friday, with net profit almost doubling up 93 per cent to S$41.1 million.

    Property consultant, Chestertons, said Capitol could get a boost when the hotel starts operating. “One potential catalyst that might come out for Capitol’s retail centre would be the opening of Patina Hotel,” said managing director of Chestertons Donald Han.

    “The Patina is almost ready to open its doors and it would welcome high-end or business tourists. So effectively, that could be a crowd puller to be able to support some of the high -end offering in Capitol. This year might potentially might see some footfall traffic. I think it might see higher occupancy settling in, as the year moves on. ”

    Turning to its other Singapore properties, Perennial said it hopes to start selling office space and medical suites at TripleOne Somerset sometime in the second quarter, and it is awaiting final approval to do the same for AXA Tower.

    Perennial’s other properties in Singapore include Chinatown Point and CHIJMES. The Singapore properties account for 21 per cent of the group’s total assets, behind China whichs accounts for around 73 per cent.

  • Perennial moves into China healthcare

    Perennial moves into China healthcare

    Perennial Real Estate Holdings is diversifying from real-estate business in China by riding on the country’s growing healthcare industry.

    On Thursday, mainboard-listed Perennial entered into a joint venture with Guangdong Boai Medical Group to develop and manage hospital and medical service businesses in the massive market.

    The real-estate developer, which has its headquarters in Singapore, will acquire a 40 per cent stake in the joint venture for 286.7 million yuan (S$62 million). Guangdong Boai Medical Group, a unit of one of China’s largest private hospital and medical services operators, China Boai Medical Group, will hold the remaining 60 per cent stake.

    Perennial chief executive Pua Seck Guan told the media yesterday that the collaboration would see both groups combining their skills and expertise to develop and manage between 30 and 50 hospitals in the next five to seven years.

    Boai, which owns 120 hospitals in China, is well established in the medical field, while Perennial has a portfolio of large-scale integrated developments in Chengdu, Xi’an, Beijing, Zhuhai and Shengyang.

    Mr Pua said: “China is trying to revamp its healthcare business. Last year, it allowed foreigners to own 100 per cent of the medical businesses in some of the provinces.”

    The Chinese government has noted the growing demand in healthcare and has allowed doctors from public hospitals to work in private hospitals, he added.

    With spending in medical services set to surge from US$357 billion (S$481.4 billion) in 2011 to US$1 trillion by 2020, Perennial saw a chance to diversify into healthcare, said Mr Pua. The joint venture with Boai would set the stage for Perennial’s strategic expansion.

    The joint venture will acquire its first operational medical business, Modern Hospital Guangzhou, a leading tumour and cancer hospitals in Guangzhou, from Boai.

    The collaboration will focus on eight core medical fields, comprising oncology, fertility, plastic surgery, aesthetic medicine, orthopaedics, paediatrics, and ear, nose, throat and eye speciality medicine.

    The others are dentistry and cardiology and cardiovascular surgery.

    To meet demand for healthcare services, Perennial Dongzhan Mall, part of the Chengdu East High-Speed Railway Integrated Development, now being built, will be repositioned from a retail mall to a medical and retail integrated hub.

    Dr Wong Weng Hong, who has over 20 years’ experience in setting up, acquiring and managing medical assets here and in China, will develop and scale up Perennial’s new engine of growth, said Mr Pua.

    Perennial’s assets here include Chijmes, TripleOne Somerset, Capitol Singapore and AXA Tower. In China, it has integrated developments with mainly retail, residential, office and hotel components.

    To meet demand for healthcare services, Perennial Dongzhan Mall, part of the Chengdu East High-Speed Railway Integrated Development, now being built, will be repositioned from a retail mall to a medical and retail integrated hub. The development will be renamed Perennial International Health and Medical Hub.

    Mr Pua said: “Within a travel distance of two hours, we can cover a population of 100 million… When a patient comes, they usually bring two to three relatives. Where do they stay? In our projects… we have service apartments and hotels. So it is a good synergy.”

    To meet demand for healthcare services, Perennial Dongzhan Mall, part of the Chengdu East High-Speed Railway Integrated Development, now being built, will be repositioned from a retail mall to a medical and retail integrated hub.