Jan. 5 (NBD) -- Shun Tak Holdings Limited ("the Group" hereinafter), a Hong Kong-listed conglomerate with core business in transportation, property, hospitality and investment sectors, announced on Wednesday that an indirect wholly owned subsidiary of the Group will, together with a consortium consisting of several investors, set up a joint venture for investment in the healthcare industry in mainland China.
The subsidiary, Wise Horizon Developments Limited (WHDL), will team up with Singapore-based property developer Perennial Real Estate's subsidiary PCIH, Thailand-based commercial bank BBPC, BreadTalk's subsidiary IPPL, Perennial's largest shareholder Kuok Khoon Hong's wholly-owned company HPRY, Singapore-based SPL, and leading agribusiness group Wilmar's direct wholly-owned subsidiary WCA to form the JV Co, and the JV partners agreed to jointly invest in the healthcare projects through their investments in the JV Co, according to the announcement released by the Group.
According to public filing on the website of the Hong Kong Exchange, casino tycoon Stanley Ho's daughter Pansy Ho holds a 24.45 percent stake in the Group and is the controlling shareholder. Pansy Ho's younger sister Daisy Ho, as the second largest shareholder, has a 14.35 percent stake.
The total committed capital for the JV Co is 500 million U.S. dollars. Upon subscription of the JV shares pursuant to the JV Agreement, WHDL will be interested in 30% equity interest in the JV Co and its commitment to the JV Co is 150 million U.S. dollars.
Currently, the JV Co has neither healthcare projects nor material assets other than the committed capital. Upon subscription of the JV Shares by the JV partners pursuant to the JV Agreement, the JV Co will initially be owned as to 30 percent, 45 percent, 10 percent, 5 percent, 4 percent, 4 percent and 2 percent by WHDL, PCIH, BBPC, IPPL, HPRY, SPL and WCA respectively, said the announcement.
With regard to the reasons for entering into the JV Agreement, the Group explained that the deal represents an excellent opportunity for the Group to expand and diversify its property investment portfolio through capitalizing upon the growing healthcare industry in mainland China.
Besides, the joint venture will allow the Group to harness capital appreciation potentials over the long run, and its hospitality business will also benefit from the partnership as an extended provision for properties to be acquired or developed, the Group added.
Pansy Ho, executive chairman and managing director of the Group, said in a press release that over the past years, the Group has strategically entered the real estate market in mainland China through investments in integrated projects with retail, tourism and cultural concepts.
This year, the Group is adding healthcare, a fast-growing and resilient sector, as a new dimension to the company's portfolio, Pansy Ho added.
The largest shareholder of the JV Co is Perennial Real Estate Holdings, parent company of PCIH, with a stake of 45 percent.
Pua Seck Guan, CEO of Perennial Real Estate Holdings, said in a press release that the JV Co aims to develop healthcare projects along high-speed railways in first-tier Chinese cities or second-tier ones with strong growth momentum. Those projects will comprise various core healthcare facilities including specialized hospitals, medical centers, eldercare homes and nursing homes.
In addition, there will be supporting facilities like hotels, retail stores, service apartments and offices, Pua Seck Guan added.
Shi Lichen, founder of third-party medical service platform Max Colla (Peking) Science & Tech. Ltd., said to NBD that such healthcare projects of the JV Co refer to, in essence, the integration of medical, healthcare, regimen and leisure resources.
To develop healthcare projects as real estate is a future trend, but should cater to people's needs and make things convenient for them, Shi noted.