Perennial to develop third HSR integrated development in China for 2.7b yuan

PERENNIAL Real Estate Holdings' 45 per cent-owned joint venture is making a 2.7 billion yuan (S$564.3 million) investment in an integrated development next to Tianjin South High Speed Railway (HSR) station, the group announced in a regulatory filing before the market opened on Friday morning.

The joint venture, Perennial HC Holdings, was awarded the tender to develop the 76,900 sqm site in Tianjin, China at a land tender price of 718 million yuan.

The site will be developed into a regional healthcare and commercial hub serving Beijing, Tianjin and Hebei. With 307,500 sqm in total gross floor area (GFA), the project is expected to commence operations progressively from 2022 onwards.

This is the joint venture's first asset and Perennial's third high speed rail healthcare and commercial integrated development in China.

Said Perennial chief executive officer Pua Seck Guan: "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."