Perennial Holdings has signed an agreement with Guangzhou Metro Group to lease approximately 105,000 sq ft of space and invest around RMB1 billion ($178.9 million) to establish two hospitals in Guangzhou.
Located in the Southeast Tower of Yuesheng Plaza, this will be the first wholly foreign-owned tertiary general hospital and specialist hospital in Guangzhou and Southern China. The two medical facilities will have a total planned capacity of over 600 beds.
According to Perennial Holdings, the two hospitals will feature a shared medical facilities and services concept that will allow doctors and medical groups to operate on an asset-light basis, without needing to invest in medical facilities and services. Instead, they will use facilities provided and managed by Perennial Holdings.
The model, which was piloted at Perennial Holdings’ general hospital in Tianjin that commenced operations earlier this year, offers convenience and cost efficiency to doctors and medical groups, the company adds.
Both hospitals in Guangzhou are expected to be completed in July 2026, forming the first phase of the Perennial Baiyun International Healthcare City. Under the partnership agreement between Perennial Holdings and the Guangzhou Baiyun District Government, the healthcare city is set to span over 1.18 sq km at an estimated total investment cost of RM5 billion. The Perennial Baiyun International Healthcare City is envisioned to be a medical and wellness precinct integrating medical, wellness, research, training, commercial and residential components, says the group.
Pua Seck Guan, executive chairman and CEO of Perennial Holdings, says: “The RMB1 billion investment aligns with our strategic focus on healthcare-centric HSR transit-oriented developments (TODs), which serve as enablers of our healthcare business, and marks our maiden healthcare business foray into the Guangdong-Hong Kong-Macau Greater Bay Area.”
The hospitals are expected to establish Guangzhou as a “top medical tourism destination”, attracting high-net-worth clients from the Asia Pacific region, believes Pua.
Meanwhile, Perennial Holdings is also set to develop an integrated eldercare project in Guangzhou’s Huangpu District, which will feature a rehabilitation hospital, nursing home and an eldercare home.
Currently, the group has five healthcare-centric TODs which are connected to HSR stations, located in Tianjin, Chengdu, Kunming, Xi’an and Chongqing. Perennial Holdings owns, manages and operates over 25,000 beds in medical and eldercare facilities, including 16,000 operational beds and 9,000 beds in the pipeline, across China and Singapore.
