Both Raffles Holland Village and Raffles Hospital Extension are currently under construction. Raffles Hospital Extension is slated for completion in 1Q17. Work at Raffles Holland Village is on track for completion by 1Q16. Raffles Hospital will add another 220,000 sq ft of floor area. There will be a future connection between Raffles Hospital and Bugis MRT station at Basement 1 level. This 20-storey building will be dedicated to outpatient traffic.
Raffles Holland Village will be a combination of medical and retail spaces, totalling 62,720 sq ft. Raffles Medical will only keep 9,000 sq ft for medical purposes. It will lease out 4,500 sq ft to DBS for its banking operations. The rest will be available for retail shops and F&B outlets. Upon completion, Raffles Medical is expected to get a 6%-7% rental yield from the commercial units in the new mall.
I believe that patient volume growth will improve as a result of the expansion. Meanwhile, the Pioneer Generation package and Community Health Assist Scheme should support patient volumes in the immediate term
|An artist's impression of Raffles Holland Village|
Positive Long-term Prospects for Healthcare SectorIn the long-term, the healthcare sector in Singapore is strongly supported by rising affluence among the masses, an aging population and increased medical tourism.
Strong cash position to fund Overseas Venture
Raffles Medical Group's cash position remains strong at S$150.2m (as of the quarter ended December 31, 2014). It has signed two letters of intent to establish private hospitals in Shenzhen and Shanghai.
2-Year Agreement With MOH To Receive SCDF Patients.
Raffles Medical Group Ltd has entered into an agreement with the Ministry of Health Singapore to collaborate on a 2-year project whereby Raffles Hospital's Emergency Department will receive patients transported to it by Singapore Civil Defence Force emergency ambulances during office hours. Raffles Hospital will provide emergency care for these patients at its ED, and follow up inpatient care and/or outpatient care at its specialist clinics, as medically indicated, in relation to the patient's presenting diagnosis at the ED. Patients treated in Raffles Hospital under this collaboration will be eligible for Government subsidy. The project is expected to be implemented around the middle of 2015, allowing time for preparation and commissioning of facilities and systems.
Power of CD