Perennial Holdings is planning to invest S$225 million ($167 million) for its initial venture into Singapore’s healthcare real estate sector after winning a public tender for the city-state’s first private assisted living development.
The developer controlled by local billionaire Kuok Khoon Hong won a government tender for the project in northeastern Singapore’s Rosyth Estate with a S$71.99 million offer, according to a joint announcement by the Urban Redevelopment Authority (URA) and the Ministry of Health on Tuesday, and is set to develop a combined nursing and assisted living facility on the Parry Avenue site.
“This unique opportunity will allow us to leverage on our successful track record as one of the largest private integrated eldercare operators and healthcare-centric developers in China,” Pua Seck Guan, executive chairman and chief executive officer of the company, said in a statement, with the company winning praise from the URA for its project concept.
With a 60-year leasehold on the property, Perennial now plans to build 200 assisted living apartments, a 100-bed nursing home and other care facilities on the 138,985 square foot (12,912 square metre) site.
Tapping China Expertise
Perennial’s winning bid translates to S$369 per square foot of the development’s permissible gross floor area of 195,000 square feet, with the company besting two competitors for the project – Singapore nursing home provider United Medicare Centre and a consortium led by local developer Evia Real Estate.
During a tender which closed in March, Perennial submitted both the highest and the second-highest offers for the project, with its alternate bid made at S$71.94 million.
The tender followed a “Concept & Price” approach to ensure that the selected concept aligns with the government’s vision for the project. Proposals were first evaluated for the suitability and “innovativeness” of the proposed care model, as well as the indicated quality level, before being eligible for a short list of offers which were evaluated on price.
The firm told Mingtiandi on Wednesday that it is open to explore joint venture opportunities with “reputable and suitable partners” for the project, which it expects to require a total investment of S$225 million.
To complement the apartments and nursing home, the winning proposal features a wellness clubhouse and a geriatric care centre, as well as access to a 1.5-hectare (3.7-acre) neighbourhood park adjoining the project. The upcoming complex will cater to a range of residents needing special care, including those with mild dementia and senior citizens.
The group said it is tapping both its local real estate and Chinese healthcare divisions for the project, which it plans to open within the next three to three and a half years. Perennial owns and operates more than 60 eldercare and medical facilities across 16 cities in China.
“We are confident to create a best-in-class benchmark project in Singapore which will showcase an integrated and seamless transitional assisted living and nursing care model, and raise the bar for quality eldercare in Singapore,” Pua said.
Elsewhere in the city-state, Perennial is busy with at least two major developments including leading a consortium of investors that has teamed up with Alibaba to redevelop the site of the AXA Tower on Shenton Way into what will be Singapore’s tallest building.
Together with Far East Organization and its Hong Kong-based sister firm Sino Land, the firm is also transforming the Golden Mile Complex building along Beach Road into an integrated office, retail and residential development.
Promoting Assisted Living
In awarding the project, the URA lauded Perennial’s “comprehensive and well-conceived” proposal for creating an integrated health and social care hub which will allow residents to live independently and have meaningful interaction with the wider community.
The assisted living apartments will include both one and two-bedroom units, served by private lifts which provide access to balconies, sky terraces and other communal areas within the complex. The wellness hub will offer activities and training programs, while the geriatric care centre is planned to give access to integrated western medicine, traditional Chinese medicine and rehabilitation services.
Awarding the tender for the city-state’s first assisted living project helps to promote greater awareness and spark interest among market players in an underdeveloped sector, according to Lam Chern Woon, research and consulting head at Edmund Tie.
“This is a much needed catalyst as the needs of Singapore’s ageing population will continue to mount in coming years, and there is much scope for development in the nascent senior living market,” Lam said.