SINGAPORE (July 29): Perennial Real Estate Holdings announced Friday that its 45%-owned joint venture vehicle, Perennial HC Holdings, will invest an estimated RMB2.7 billion ($564.3 million) to develop the Tianjin South High Speed Railway (HSR) Integrated Development in Xiqing District, Tianjin.

Spanning approximately 307,500 sqm in total gross floor area (GFA), the Tianjin South HSR Integrated Development is envisioned to be a one-stop regional healthcare and commercial hub to serve the upcoming megalopolis integrating Beijing, Tianjin and Hebei (Jing-Jin-Ji) in Northeast China.

Expected to commence operations progressively from 2022 onwards, the integrated development will comprise a general hospital, women’s and children’s hospital, eldercare facilities supported by a geriatric hospital, hotels, as well as complementary retail and healthcare-related trades.

The announcement comes after the JV vehicle was awarded the tender to develop three plots of land with a total land area of approximately 76,900 sqm adjacent to the Tianjin South HSR Station at a land tender price of RMB 718 million ($150.3 million).

According to Perennial, the Tianjin South HSR Integrated Development is well-poised to meet the needs of an ageing population and a growing pool of young professionals drawn to Tianjin by the local government’s talent attraction policies.

Situated in a government-designated high-tech commercial zone, the development’s surrounding population is expected to grow by at least 25% in the years ahead, it adds.

Tianjin South HSR Station is also expected to be a key interchange station to support the planned Beijing-Tianjin-Shanghai HSR Line 2 and Tianjin-Xiong’an HSR Line.

“We are pleased to secure the first asset for the Perennial-syndicated JV Vehicle and Perennial’s third HSR healthcare and commercial integrated development in China,” says Pua Seck Guan, chief executive officer of Perennial.

“Together with our two existing HSR projects in Chengdu and Xi’an, Tianjin South HSR Integrated Development increases our HSR portfolio’s total GFA to approximately 2.5 million sqm. This brings us a step closer to potentially owning up to eight HSR projects of over 4 million sqm, as we establish ourselves as the dominant market player with the largest HSR portfolio,” Pua adds.

The Perennial HC Holdings JV vehicle was established in January and targets a total capital commitment of up to US$1.2 billion ($1.6 billion), which will invest in, acquire and develop large-scale and predominantly healthcare integrated mixed-use developments which are connected to HSR stations in China.

Perennial is the largest shareholder with a 45% stake. The remaining stakes held by a subsidiary of Shun Tak Holdings with a 30% stake, Bangkok Bank with a 10% stake, a subsidiary of BreadTalk Group with a 5% stake, an investment vehicle of Kuok Khoon Hong with a 4% stake, S1F with a 4% stake, and a subsidiary of Wilmar International with a 2% stake.

See: Perennial-led consortium sets up US$1.2 bil JV to develop high-speed railway linked mega healthcare developments in China

Shares of Perennial closed half a cent higher at 81 cents on Friday.