18
PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
LETTER TO SHAREHOLDERS
of use to position it as the premier Traditional Chinese
Medicine (“
TCM
”) centre in Singapore that provides quality
TCM treatment by professional physicians in a conducive
and luxurious environment. The property is expected to
commence operations in the third quarter of 2016.
Separately, as part of our on-going evaluation of our
strategic investments, we divested our entire 1.46%
interest in 112 Katong, together with our 23% interest in
the asset manager of 112 Katong. We also acquired an
additional effective interest of about 3.68% in Chinatown
Point
2
, thereby increasing our effective interest in the
property from 1.47% to 5.15%.
CHINA
In China, we have five prominent large-scale integrated
developments which are connected to transportation
hubs, of which one is currently operational. Two suburban
retail malls are also in operation.
Within our portfolio of integrated developments,
Chengdu East High Speed Railway (“
HSR
”) Integrated
Development took centre stage with a series of significant
activities relating to the change of usage at two of its plots
to dovetail with our strategic venture into the healthcare
business in China.
Firstly, Perennial Dongzhan Mall was repositioned
as Perennial International Health and Medical Hub
(“
PIHMH
”) to meet the strong domestic demand for
healthcare services. Positionedas the first healthcare cum
retail integrated development in Chengdu and Sichuan
Province, PIHMH has secured Chengdu ParkwayHealth
Hospital as an anchor tenant which will operate a
350-bed tertiary facility. The multi-disciplinary hospital is
expected to commence operations in the second half of
2017. In addition, three specialty anchor tenants, AND
Maternal and Child Health Centre, Gulian Rehabilitation
and Nursing Centre and St. Stamford Plastic Surgery
and Aesthetic Hospital, have signed committed leases
at PIHMH.
To-date, the total committed occupancy at PIHMH stands
at about 54%. We will now focus our leasing efforts on
complementary healthcare and wellness-related services
and supporting retail trades. Construction works at PIHMH
are expected to complete by 2016.
Secondly, Chengdu East HSR Integrated Development
Plot D2 (“
Chengdu Plot D2
”) was earlier designated as
a mixed-use apartment and retail development for strata
sale. In view of the acute shortage of quality eldercare
facilities in Chengdu, Chengdu Plot D2 was repositioned
as a holistic eldercare and retirement home development
with complementary eldercare trades and services.
The eldercare and retirement home will also benefit from
the professional care available at PIHMH. To-date, three
apartment blocks with some retail spaces have topped-
out, of which two blocks have received its pre-sale
permits. The remaining three blocks are expected to top-
out in 2016.
At least 914,000 sq ft of GFA on Chengdu Plot D2 will be
master leased to a joint venture (“
JV
”) company, in which
Perennial has a 40% stake, to operate the premium
Chengdu Xiehe International Eldercare and Retirement
Home (“
Chengdu Xiehe Home
”). The Xiehe brand of
eldercare and retirement home is renowned as one of
the top private senior housings in Shanghai catering to
the middle-to-upper income clientele. For a start, three
of the six apartment blocks will be converted to house
the Chengdu Xiehe Home, with subsequent blocks to
be converted and rolled out at a later stage. Chengdu
Xiehe Home, which will comprise a Retirement Home, a
Nursing Home and a Rehabilitation Home, is expected to
commence operations in 2017.
InTongzhouDistrict,whereourBeijingTongzhouIntegrated
Development is located, there is an intensification of
infrastructure and commercial activities resulting from the
Beijing Municipal Government’s planned relocation from
Beijing’s city centre to the Tongzhou District in 2017
3
,
and the proposed establishment of the US$3.3 billion
(approximately S$4.6 billion) Universal Studios Beijing,
one of the largest theme parks in China, in the precinct
4
.
2 Comprising the retail mall and four strata office units.
3 Source: The Paper China article dated November 2015.
)
4 Source: Beijing Youth Daily article dated January 2015.
)
