OUE Lippo Healthcare in joint venture with China Merchants Group to operate Changshu hospital

OUE Lippo Healthcare will jointly manage a obstetrics and gynaecology hospital in Changshu, China with Hong Kong-based state-owned conglomerate China Merchants Group (CMG).

This 50:50 joint venture in the south-east of China's Jiangsu province will house 140 beds, with a gross floor area of about 25,000 square metres.

It is expected to be commissioned in 2023.

The project will be structured as a lease and operate model under a long-term lease of 19.5 years, with OUE Lippo Healthcare having the right of first refusal to renew the lease upon expiry.

Catalist-listed OUE Lippo Healthcare currently operates one hospital and is developing another two in China.

The company's shares closed up 10 per cent at S$0.033 on Wednesday.