This article first appeared in The Edge Financial Daily, on June 9, 2016.

KUALA LUMPUR: IHH Healthcare Bhd’s wholly-owned subsidiary Parkway Pantai Ltd said it is developing a 450-bed multi-specialty tertiary hospital in the Shanghai New Hongqiao International Medical Center (IMC).

The development, it said, will be undertaken by a joint-venture entity, which is 70%-owned by Parkway Pantai and 30%-owned by Shanghai Hongxin Medical Investment Holding Co Ltd.

The entity has entered into a land contract with the Shanghai Minhang District Planning and Land Authority for the development of the hospital on a 35,754 sq m site, which was acquired on a leasehold basis for 50 years.

Called ParkwayHealth Shanghai International Hospital, the hospital is slated for opening in 2020, with a registered capital of 455 million yuan (RM280 million), said Parkway Pantai in a statement yesterday.

It will offer a range of specialties and healthcare services, with a focus on cardiology, cardiac surgery, gastroenterology, urology, minimally invasive surgery, general surgery and internal medicine, the company said.

“We are excited to strengthen our presence in Shanghai, with the development of a world-class 450-bed tertiary hospital.

“ParkwayHealth Shanghai International Hospital will leverage our existing network of medical centres to provide integrated healthcare services for residents in the Yangtze River Delta and beyond,” said IHH chief executive officer and managing director Dr Tan See Leng.

Meanwhile, Shanghai New Hongqiao IMC Construction Development Co Ltd chairman Yang Jie said ParkwayHealth Shanghai is the only foreign joint venture general hospital in the New Hongqiao IMC.

“Given its close proximity to the Hongqiao airport and high-speed railway station and Parkway Pantai’s solid track record in delivering outstanding patient care and outcomes, we are confident [that] the hospital will serve the healthcare needs of the local residents, as well as medical tourists to Shanghai,” he said.

ParkwayHealth Shanghai International Hospital is the seventh medical centre investment by IHH in Shanghai.

IHH is also developing its first tertiary medical facility in Chengdu, China, through its indirect wholly-owned subsidiary M&P Investments Pte Ltd and its partner Shanghai Broad Ocean Investments Co Ltd.

Tan on May 27 reportedly said the group is focusing on growing in China, India and Turkey. He added that 70% of IHH’s targeted expansion next year would be in China, where the emphasis would be in Hong Kong and Shanghai.

The group has allocated RM4.83 billion until 2018 for expansion purposes, which include an additional 3,000 beds in the near term.

IHH’s share price closed six sen or 0.92% lower yesterday at RM6.44, with a market capitalisation of RM52.99 billion.