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PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
REAL ESTATE BUSINESS
CHINA
Acquire and develop large-scale mixed-use
development projects in first-tier and second-tier
provincial capitals and major cities
Perennial targets large-scale mixed-use greenfield
development projects encompassing different asset
classes strategically positioned in high growth cities in
China, and in close proximity to transportation hubs,
including High Speed Railway stations.
These large-scale iconic mixed-use projects allow
Perennial to distinguish itself from its competitors, provide
complementary advantages between different asset
classes and enhance Perennial’s resilience against any
future policies for specific asset classes.
Adopt strata sale / long term hold strategy to better
manage fund flows, while benefiting from operating
long term assets
Perennial will adopt an active strata sales strategy in
relation to projects located in China, whose proposed
designs are such that up to 50% of the gross floor area of
such developments comprise asset classes which allow
for strata sub-division of the developments for sale (such
as residential and strata retail units) for capital recycling
purposes, with the remainder to be held for the long-term.
This will allow Perennial to:
• tap on an additional source of funds, recycle capital
and reduce its external financing requirements; and
• retain an interest in long-term assets, hence
benefiting from any uplift in asset valuations which
will enhance its net asset value, as well as enjoy
future income from these operational assets.
BUSINESS STRATEGY
SINGAPORE
Acquire assets or land which can be repositioned
and redeveloped to extract embedded value
Perennial intends to acquire properties or land plots which
can be repositioned or redeveloped to create value. In
addition, Perennial will selectively acquire completed
operational assets which will augment the stream of
recurring income and provide further income stability.
OTHER MARKETS
Achieve first-mover advantage in high-growth and
untapped emerging markets
Perennial will selectively pursue real estate opportunities
in other markets with a focus on emerging markets by:
• leveraging on its Sponsors’ extensive network of
relationships and experience in the emerging markets;
• focusing on acquiring urban renewal or rejuvenation
projects which require international expertise; and
• optimising its capital structure through a combination
of onshore and offshore funding.
HEALTHCARE BUSINESS
Introduce healthcare real estate as an asset class in
large-scale integrated developments
Perennial will introduce healthcare real estate within its
large-scale integrated developments to create synergy
between the various components so as to enhance the
value of the entire integrated development.
Form strategic partnerships with established local
and foreign healthcare or medical-related operators
to scale the business
Perennial will partner with reputable local and foreign
healthcare or medical-related operators with extensive
local and international networks and strong operating
track records with the aim to provide a holistic range of
healthcare and medical services.
