Swire Pacific invests in new Shenzhen private hospital as part of strategy to tap ‘robust’ consumer spending in mainland China
- New multi-speciality hospital is owned and operated by New Frontier Health, which is chaired by ex-Hong Kong Financial Secretary Antony Leung
- Stake also strengthens Swire Pacific’s business portfolio in Greater Bay Area
Swire Pacific’s investment – its second in the mainland hospitals sector – comes as part of a strategy to identify new and diversified investment opportunities that increase its exposure to the robust growth in consumer spending in China, the company said. It had made an “associate” investment, which typically means a 20 per cent to 50 per cent stake, it added without providing further details.
“Our investments in the health care sector bear many of the hallmarks of the group’s long-standing investment strategy, and are a good fit with our capabilities,” said Guy Bradley, the chief executive of Swire Properties, who also chairs Swire Pacific’s health care Advisory Board. “While at present we are taking minority positions in the investments in the health care industry, in time, we believe it has the potential to become a separate division and a meaningful business for us,” he added.
“The combination of a rapidly growing middle class and an ageing population creates the perfect condition for increasing demand for private quality health care services in mainland China,” Bradley said.
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A comprehensive multi-speciality facility, Shenzhen New Frontier United Family Hospital will focus on areas such as obstetrics, gynaecology, family medicine, oncology and orthopaedics, and is expected to be operational in the second half of this year. The premium private hospital will cover about 64,000 square metres and have 350 inpatient beds.
UFH’s network of hospitals and clinics extends to cities that include Beijing, Shanghai, Guangzhou, Tianjin, Qingdao and Bo’ao. Located in the heart of Shenzhen’s Futian district, the new hospital will also be UFH’s largest hospital.
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The stake in Shenzhen New Frontier United Family Hospital will also strengthen Swire Pacific’s business portfolio in the Greater Bay Area development zone, the burgeoning economic powerhouse in southern China. It follows another investment in April 2020 by Swire Pacific, in Columbia China health care, a Shanghai-based health care services provider that operates private hospitals, clinics and senior care facilities.
The company will continue to look for more investment opportunities in major city clusters where it has property assets on the mainland.
