SINGAPORE (Aug 26): During a results briefing -earlier this year, Pua Seck Guan, CEO of Perennial Real Estate Holdings (PREH), sidestepped questions on capital expenditure, debt, debt-to-equity levels, cash flow, earnings before interest and taxes (Ebit), earnings before interest, taxes, depreciation and amortisation (Ebitda), hedging policy, and sponsors and consortiums. He preferred, instead, to discuss China’s great potential for healthcare and eldercare operators.
PREH holds, through its own balance sheet, consortiums and joint ventures, stakes in properties in Singapore and China, and healthcare facilities in China. The Singapore properties are AXA Tower, -CHIJMES, 111 Somerset and Capitol Singapore. In China, PREH owns stakes in hospitals in Guangzhou and Chengdu, a medical centre in Chengdu, and an eldercare business through its 49.9% stake in Renshoutang, a private, integrated eldercare company. PREH paid the equivalent of $148 million in 2016 for its stake.
Overall, China real estate accounts for 60.7% of PREH’s total assets, and Singapore real estate 30.2% by effective stake, that is, based on PREH’s stake in each -asset.
