Expansion
Proceeding as Planned
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 Sector
In 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
Dividend Warrior
