Perennial Real Estate said on Thursday that its 45 percent-owned joint venture, Perennial HC Holdings, was awarded the tender by the People’s Government of Chenggong District, Kunming, Yunnan Province to develop two plots of land next to the Kunming South High Speed Railway Station.
The tender price is 341.5 million yuan, or around S$67.6 million, which will be funded via equity capital calls from the joint venture’s shareholders, Perennial said in a filing to SGX before the market open on Thursday.
The 40-year commercial land use rights allow an around 627,600 square meter maximum allowable gross floor area for the project, called the Kunming South HSR Integrated Development, it said.
“The Kunming South HSR Integrated Development will be developed into a one-stop regional healthcare and commercial hub comprising medical care, eldercare, hospitality, meetings, incentives, conferences and exhibitions (MICE) and retail components,” Perennial said, adding it would include a “cluster of hotels.”
It noted the project is around 20 kilometers from the Kunming city center and 25 km from the Kunming Changshui International Airport, as well as being accessible by subway lines and the largest high speed railway station in Southwest China.
Yunnan province is also among China’s top tourist destinations, adding to its attractiveness as a medical tourism destination, it said.