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IHH Healthcare breaks ground for new Shanghai hospital set to open in 2020
IN a sign that marks its entry into its next phase of growth in Greater China, IHH Healthcare broke ground for Gleneagles Shanghai Hospital with its partners.
The healthcare provider did so together with its strategic partner in China, Taikang Insurance Group, and the project joint-venture (JV) partner, Shanghai Hongxin Medical Investment Holding Co.
The 450-bed multi-specialty general hospital is the only foreign private JV hospital in Shanghai New Hongqiao International Medical Centre (SNHIMC).
IHH said on Friday Gleneagles Shanghai is expected to require 1.36 billion yuan (S$276.6 million) of capital expenditure and is set to open in 2020.
It said its entry into SNHIMC will support the central China government's ambition to develop Shanghai into a world-class medical destination for China nationals, medical tourists and expatriates while also providing additional healthcare options for local residents.
"It is part of an RMB8 billion pipeline of hospital projects that will deliver quality healthcare options for patients across key regions, paving the way for greater China to become IHH's fifth home market after Malaysia, Singapore, Turkey and India," the group said.
To drive growth in China, IHH has entered into a strategic partnership with Taikang to leverage the latter's complementary strengths in healthcare and insurance.
With the completion of the transaction in April this year, IHH and Taikang will jointly fund future projects in proportion to their shareholdings in an IHH subsidiary (IHH: 70.1 per cent, Taikang: 29.9 per cent) that manages its primary care portfolio, as well as new hospital projects in the mainland.
For the development of Gleneagles Shanghai, IHH and Taikang have entered into a 70:30 joint venture with Shanghai Hongxin, a majority-owned subsidiary of Shanghai New Hongqiao International Medical Centre Construction Development Co.
Gleneagles Shanghai Hospital will be built on a 35,754-square-metre site acquired on a leasehold basis for 50 years.