OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX The key highlight for the year was when Perennial Holdings won the tender for a site at Parry Avenue, which was launched by the Urban Redevelopment Authority in collaboration with the Ministry of Health (“MOH”), to develop Singapore’s first private assisted living development (“Parry Assisted Living Care”) at a tender price of S$71.988 million. Spanning a total gross floor area of approximately 195,000 sq ft, the new housing-cum-care model development will comprise a 200-unit Assisted Living Apartment, a 100-bed Nursing Home, a Wellness Clubhouse and a Geriatric Care Centre. Parry Assisted Living Care will also be integrated with a new community park of approximately 1.5 hectares. The park will be developed by Perennial Holdings and returned to the National Parks Board upon completion. The successful tender marks the Company’s maiden entry into Singapore’s eldercare sector. Singapore is faced with the challenge of a rapidly ageing population. Citizens aged 65 and above made up almost a fifth of the country’s population in 2023. By 2030, this proportion is projected to reach one in four citizens. According to MOH, about 100,000 seniors will require assistance with at least one daily living activity by 2030. As a Singapore company with deep experience in integrated eldercare and medical care in China, we are committed to leverage on our track record as one of the largest private integrated eldercare operators in China to establish a best-inclass development with quality care suited for seniors to age in place in Singapore. China In 2023, China experienced GDP growth of 5.2%, surpassing the 3.0% growth recorded in 2022. Despite the higher GDP growth, China’s property sector continued to face challenges. Property investments experienced a 9.6% Yoy decline, while property sales by floor area decreased 8.5% in 2023. However, stabilisation is anticipated in the property sector as new real estate policies, such as reduced downpayment ratios and mortgage interest rates aimed at bolstering the real estate market, come into effect. China has also remained steadfast in its construction efforts for an extensive HighSpeed Rail (“HSR”) network. By the end of 2023, China’s operational railways spanned over 155,500 kilometres (“km”), including 43,700 km of HSR. Investment in the railway network reached RMB640.7 billion, marking a YoY growth of 7.4%. In 2023, the average daily number of passenger trains reached 9,638, a YoY increase of 52%. There are plans to extend the HSR to 50,000 km by 2025 and 200,000 km by 2035. In the year, a major milestone was achieved when Perennial International Healthcare and Medical Hub Chengdu (“PIHMH Chengdu”) celebrated its fifth anniversary. PIHMH Chengdu, which comprises predominantly medical and healthcare-related tenants, is positioned as a regional healthcare hub. It is sited within Chengdu East HSR Integrated Development, our first-generation healthcarecentric HSR TOD, and enjoys connectivity to the Chengdu East HSR Station, one of the key HSR stations in China, which serves approximately 250,000 passengers daily. To further expand our healthcare business offerings, we entered into a 40-60 joint venture (“JV”) with Yingkang Medical (60%) to operate our first co-branded general hospital SuperiorMed Perennial Hospital within PIHMH Chengdu. Occupying over 51,500 square metres, SuperiorMed Perennial Hospital is a 350-bed general hospital with wide-ranging healthcare services and medical specialties and sub-specialties, including oncology, internal medicine, surgery, obstetrics and gynaecology, paediatrics, intensive care, emergency medicine, rehabilitation, stomatology and psychology. Another key milestone was achieved in the year when we officially introduced Perennial Tianjin South HSR International Healthcare and Business City (“Tianjin HSR TOD”) as our second-generation healthcare-centric HSR TOD, offering integrated eldercare, medical care and hospitality components. Spanning 3.5 million sq ft and developed at a total investment cost of approximately S$1 billion, Tianjin HSR TOD is adjacent to the Tianjin South HSR station, a key station positioned to serve the communities in the Jing-Jin-Ji megalopolis comprising the cities of Beijing, Tianjin and Hebei in North China. An official ceremony was held to unveil the various Perennial-branded eldercare facilities, as well as Perennial-branded and Perennial co-branded medical facilities within Tianjin HSR TOD. The eldercare component comprises three eldercare facilities with a While its railway network has been growing, China’s population registered a second year of decline to 1.4097 billion. The country’s population aged 60 and above was at about 297 million in 2023, or 21.1% of the overall population. This demographic is expected to increase to more than 400 million by 2035 and more than 500 million by 2050. To address the challenges of an ageing population, the Government announced plans in early 2024 to strengthen the silver economy to improve the livelihoods of seniors, including enhancing food and healthcare services and expediting the development of eldercare care institutions. Considering these megatrends and shifting demographics, we ensure the long-term alignment of our business portfolios to support the needs of the consumers and wider community as an integrated real estate and healthcare company. In the real estate sector, Perennial Holdings remains focused on solidifying its position as a leader in transit-oriented developments (“TODs”). This is exemplified by our portfolio of eight TODs, comprising five HSR TODs, of which four are healthcare-centric and one commercial-centric. The remaining three are commercial TODs strategically situated in close proximity or are seamlessly connected to major transportation hubs. The expansion plans for HSR augur well for our TODs, positioning them favourably to capitalise on the growing business opportunities that may arise from extended accessibility and an enlarged population catchment area. For our healthcare business, Perennial Holdings has established a strong and esteemed reputation across our three key business segments; Hospitals and Medical Centres, Healthcare Hubs, as well as Eldercare and Senior Housing. The key highlight for the year was when Perennial Holdings won the tender for a site at Parry Avenue, which was launched by the Urban Redevelopment Authority in collaboration with MOH, to develop Parry Assisted Living Care at a tender price of S$71.988 million... The successful tender marks the Company’s maiden entry into Singapore’s eldercare sector. Another key milestone was achieved in the year when we officially introduced Perennial Tianjin South HSR International Healthcare and Business City as our second-generation healthcare-centric HSR TOD, offering integrated eldercare, medical care and hospitality components. 11 ANNUAL REPORT 2023
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