OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX Hub, a one-stop medical and healthcare regional hub sited within our first-generation healthcare-centric HSR TOD in Chengdu. We had earlier acquired the hospital platform from one of our tenants operating within the hub. Subsequently, in FY2023, we collaborated with a local operator (60%) to establish the hospital, marking our first foray into the medical care owner and operator business. The strong operating result reflects the demand for quality private medical services driven by experienced management and is an excellent testament to our medical care execution capabilities. This year, building on the success of the hospital, we intend to repurpose a 25,500 sq ft space within the hub to operate a medical gym to offer specialised programmes targeted at health-conscious individuals and sports enthusiasts, further expanding our range of complementary healthcare business offerings. GROWING CONTINUUM OF ELDERCARE IN CHINA Our foray into the eldercare business started in 2016 with our strategic investment in Renshoutang in China. Emerging from the COVID-19 pandemic, Renshoutang’s overall occupancy and net profit after tax as at 31 December 2024 improved by approximately 74% and over 300%, respectively, when compared against their respective lowest points as at 31 December 2020. Over time, our eldercare business has grown significantly, with Renshoutang expanding the number of operational beds from 2,400 in 2016, when we invested, to over 12,000 to date, fueled by our hypergrowth assetlight strategy, which focuses on operating eldercare facilities at suitable premises without owning the real estate. Today, Renshoutang operates three distinct brands, each catering to a different market segment, ranging from the mass market to the affluent. Reputed for its private integrated eldercare services, its comprehensive suite of services includes eldercare, medical care, Traditional Chinese Medicine (“TCM”), nursing care and dementia care. In FY2024, three of Renshoutang’s facilities were certified ‘Smart Eldercare Institutions’ by the Shanghai Civil Affairs Bureau, further solidifying its reputation in providing technologically advanced eldercare and health management solutions. Renshoutang is now one of the largest private eldercare operators in China, with a portfolio of over 30 eldercare and nursing facilities. With a robust pipeline of committed projects and an expanding portfolio of beds, Renshoutang is also poised to become one of the largest and most influential eldercare service providers in the Yangtze River Delta region. Through the deep learnings gained from owning and operating Renshoutang, we applied these eldercare business capabilities to establish Perennial-branded eldercare facilities across the continuum of care at our healthcare-centric HSR TOD, starting with Tianjin, mentioned above. Seniors at the eldercare cluster at our Tianjin HSR TOD enjoy integrated medical care and eldercare services, including western and eastern medical treatments, complemented by a meticulously planned range of care facilities, including an advanced rehabilitation centre and hydrotherapy pool. We also provide them with a selection of high-quality accommodations with elderly-friendly smart features, leveraging our real estate and hospitality skillsets, as well as proprietary integrated health management technology and services. To provide seniors with an even more comprehensive range of care, we ventured into specialised dementia care with the establishment of Perennial Alzheimer’s Care Village in Xi’an, positioning it as China’s first and the world’s sixth Alzheimer’s care facility. The specially curated development has a built-up area of more than 400,000 sq ft, with a total of 700 beds across its eldercare complex, nursing hospital and rehabilitation hospital. It also features the International Geriatric Health Management Research Institute, which launched Northwest China’s first training base for Alzheimer’s care. The facility, which commenced operations in FY2024, empowers seniors to lead meaningful lives in a supportive environment, while setting a new benchmark in Alzheimer’s care and senior living in China and globally. In FY2024, we also made our maiden foray into the eldercare market in Beijing, China’s capital city, by successfully securing a 20-year management contract from the government and subsequently, forming a JV with a reputable local partner (49%) to operate the 156-bed Perennial Jingxin Senior Care Home, in line with our assetlight strategy. STRONG PIPELINE OF MEDICAL CARE AND ELDERCARE SERVICES IN CHINA Following the successful execution of our distinctive integrated healthcare city concept, comprising medical care, eldercare and hospitality clusters at our Tianjin HSR TOD, we will replicate this concept at our upcoming healthcare-centric HSR TODs in Kunming and Xi’an. In December 2024, the 577-bed assisted living apartments in Kunming commenced operations, marking the first opening milestone for the project, while development works continued to progress well at the Xi’an project. With our strong track record in leveraging our integrated medical care and eldercare value chain, underpinned by our real estate skillsets, ranging from land sourcing and development, to design and operations, coupled with our strong partnerships with doctors and medical groups, our pipeline of healthcare projects, particularly for largescale healthcare-centric HSR TODs, is set to expand, with our Perennial-branded and co-branded medical care and eldercare facilities growing in tandem. ACQUIRED FIFTH HEALTHCARECENTRIC HSR TOD In FY2024, we expanded our healthcarecentric HSR TODs portfolio to five, through the acquisition of a land plot adjacent to the Chongqing East HSR Station. The new site is expected to house a general hospital and medical suites. With a rapidly ageing population, the burgeoning silver and healthcare markets in China remain underserved. Catering to the growing demand for convenient and comfortable travel, the country is also rapidly expanding its HSR network, which has since surpassed 45,000 km1. These factors serve well for our growth strategy in healthcare, enabled by our focus on large-scale integrated healthcare-centric TODs close to some of the country’s largest HSR stations. REPLICATING INTEGRATED ELDERCARE AND MEDICAL CARE STRATEGY IN SINGAPORE Building on our successful ventures in China, we are bringing our high-quality medical care and eldercare expertise back to our home ground in Singapore. By replicating our integrated approach, we aim to address the needs of Singapore’s ageing population, where one in four citizens will be aged 65 or older by 20302. In FY2023, we successfully tendered for the country’s first private assisted living development. Construction is currently underway and the development, located at 28 Parry Avenue, is scheduled to open in 2026. Integrating eldercare with holistic medical care and wellness, Parry Assisted Living Care aims to set a best-in-class benchmark for quality eldercare in Singapore. Earlier this year, we grew our eldercare business footprint through our successful tender to lease a state property at 106 Jervois Road, in alignment with our assetlight strategy, to establish Jervois Wellness. Positioned as Singapore’s first-of-its-kind private integrated rehabilitation and TCM sanctuary, it is expected to offer preventive and post-care services to communitydwelling seniors as well as seniors who no longer require residential care at Parry Assisted Living Care. 1 China Daily, 9 October 2024 https://www.chinadaily.com.cn/a/202410/09/WS67062d9ca310f1265a1c6ae3.html 2 Ministry of Health https://www.moh.gov.sg/others/resources-and-statistics/action-plan-for-successful-ageing 05 ANNUAL REPORT 2024
RkJQdWJsaXNoZXIy NTM2MDQ5