Raffles Medical Group - Buys land in China to develop hospital
- Raffles Medical Group (RMG) this morning announced that it has acquired a piece of land with estimated land area of 28,000 sqm together with an in-construction building thereon, located in the New North District of the Liangjiang New Area in Chongqing for the development of a 700- bed international tertiary general hospital.
- The construction is targeted to be completed in 2Q18 and the consideration payable for the land and the construction costs incurred up to end-Jan 17 was ~RMB188m. The hospital will provide high quality and comprehensive healthcare services to local, expatriate and international patients.
- Recall that on 27 Feb, RMG announced a MOU to explore cooperation between Chongqing Liangjiang New Area Administrative Committee and RMG on healthcare related projects.
- We remain positive over RMG’s steady long-term growth outlook and reiterate BUY on RMG with an unchanged FV of S$1.60.