SINGAPORE (Dec 31): OUE Lippo Healthcare will manage three medical facilities in Shanghai, Chongqing and Nanjing through to a joint-venture agreement.

Named China Merchants Lippo Hospital Management (Shenzhen), the company is a 50:50 JV between OUE Lippo’s indirect wholly-owned subsidiary Lippo Healthcare and China Merchants Landmark (Shenzhen), a member of China Merchants Group (CMG).

The facilities are namely: Shanghai Chongqing Hospital, a Grade II 204-bed hospital located in Yuzhong District on a land area of about 11,000 sqm; Chongqing Changhang Hospital, another Grade II hospital with 219 beds on a land area of about 13,750 sqm; as well as Nanjing Youyun Hospital, a Grade I hospital with a gross floor area of about 2,015 sqm.

Under the management agreements, China Merchants Lippo Hospital Management (Shenzhen) will manage these hospitals for a period of one year, and paid a management fee equivalent to 5% of the annual revenue for each.

It will also have the right to acquire an interest in any of the hospitals, post the completion of their regulatory restructuring.

Lee Yi Shyan, chairman of OUE Lippo Healthcare, believes the healthcare facilities present opportunities for the group to leverage considering their prime locations within their respective cities in China.

“On the back of strong growing demand for quality healthcare in China, we are steadily expanding our healthcare network with our partner, China Merchants Group. In addition to our presence in Dujiangyan, Chengdu, and the recently announced new hospital project in Shenzhen, we now have expanded into another three high-growth cities viz Shanghai, Chongqing, and Nanjing,” says Stephen Riady, chairman of OUE Group.  

Shares in the group closed 1 cent lower at $1.41 on Friday.