50
PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
BUSINESS REVIEW
Key Developments in the Period
Perennial’s integrated developments in Chengdu, Xi’an,
Beijing and Zhuhai achieved good construction progress
after finalising the respective development plans and
securing the necessary approvals to commence work.
Comprising a mix of complementary asset classes, such
as retail, office, hotel, serviced apartments and residences,
our integrated developments are well-positioned to serve
a regional market, being strategically located in close
proximity to transportation hubs. In view of the synergy
that can be achieved with the introduction of healthcare
real estate as a new asset class within the integrated
developments, Perennial launched this new asset class
at the Chengdu East HSR Integrated Development.
Chengdu East HSR Integrated Development is connected
to the operational Chengdu East HSR Station, one of
the eight largest HSR transportation hubs in China.
The station is well-poised to serve a population of over
100 million within a 2-hour train ride, not just within
Chengdu and other provincial cities, but also the nearby
megacity of Chongqing.
On the first plot at Chengdu East HSR Integrated
Development, the 3.1 million sq ft GFA Perennial
Dongzhan Mall was repositioned as Perennial
International Health and Medical Hub (“
PIHMH
”) to
meet the strong local demand for healthcare services.
Positioned as the first healthcare cum retail integrated
development in Chengdu and Sichuan Province, PIHMH
has since secured Chengdu ParkwayHealth Hospital as
an anchor tenant, which will take up about 517,000 sq ft
of space in one block of the development. The 350-bed
tertiary facility will be equipped with advanced medical
facilities and equipment, providing specialised care and
clinical services, including obstetrics and gynaecology,
paediatrics, cardiology, orthopaedics, ophthalmology and
internal medicine. The hospital is expected to commence
operations in the second half of 2017.
In the other block of PIHMH, three specialty anchor
tenants, being AND Maternal and Child Health Centre
(“
AND
”), Gulian Rehabilitation and Nursing Centre
(“
Gulian
”) and St. Stamford Plastic Surgery and Aesthetic
Hospital have signed committed leases. AND, a renowned
local maternal and child health and wellness group that
provides integrated Western and Eastern post-natal care,
has taken up about 89,300 sq ft space to operate one of
the largest post-natal confinement centres in Chengdu.
Gulian, an established Sino-Swedish medical group, has
committed to a space of about 140,000 sq ft to set up
a 200-bed rehabilitative care facility, which will be their
largest hospital in Southwest China. St. Stamford Plastic
Surgery and Aesthetic Hospital, to be operated by a
Perennial healthcare JV, has leased a space of about
90,400 sq ft to provide plastic surgery, aesthetic medical
and dental services.
To-date, the total committed occupancy at PIHMH stands
at approximately 54%. Leasing efforts will now focus on
complementary healthcare and wellness-related services
and supporting retail trades. PIHMH has structurally
topped-out and development works are expected to
complete by 2016.
On another plot of the integrated development, about
2.5 million sq ft GFA Chengdu East HSR Integrated
Development Plot D2 (“
Chengdu Plot D2
”), which
was earlier designated as a mixed-use apartment and
retail development for strata sale, was repositioned as a
holistic eldercare and retirement home development with
complementary eldercare trades and services to meet
the demand for quality eldercare facilities in Chengdu.
Comprising six 37-storey apartment blocks, three 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 this year.
At least 914,000 sq ft GFA on Chengdu Plot D2 will be
master leased to a Perennial healthcare JV to operate
the premium Chengdu Xiehe International Eldercare and
Retirement Home (“
Chengdu Xiehe Home
”). Chengdu
Plot D2, with its strategic location and excellent transport
connectivity, is an ideal location for Chengdu Xiehe Home
as it is easily accessible by visitors and staff of the home. In
addition, PIHMH will be in a good position to support the
medical needs of the elderly occupants at Chengdu Xiehe
Home with tenants such as Chengdu ParkwayHealth
Hospital and Gulian, and other complementary healthcare
and wellness-related services.
