Thailand’s listed property developer Everland Pcl (EVER) is joining hands with Arthit Ourairat, the founder of Thailand-based Rangsit University, to establish a 300-bed Rangsit International Hospital with total investment of around 6 billion baht ($170 million).
EVER will hold 30 per cent in the joint venture through its subsidiary My Hospital Co Ltd, and Arthit will invest the remaining 60 per cent through RSU International Hospital, which has raised its registered capital to 1.2 billion baht since last year.
“Last year we [EVER] have acquired three private hospitals, but the return on investment is pretty slow due to the small size. However, this JV will be a new large-sized hospital which meets the international standard,” Swechak Lochaya, chief executive of EVER, told DEALSTREETASIA.
At the moment, he said it is on the process of preparing an environmental impact assessment and design,
He said that it is eyeing on the opportunities to acquire more hospitals, focusing on small and medium-sized ones outside Bangkok.
“We are discussing with a few hospitals, which may require the investment of 500 million to 1 billion baht. Therefore, we are considering raising the capital in the mid of this year,” he cited.
The main income source for EVER this year will still come from the property development business, which is targeted to reach 1.2 billion baht, up 20 per cent from 2015.
However, it should still get the loss in the first two quarters due to high financial cost burden, and turn red into green from the third quarter onwards thanks to income from hospital business.
In the first nine months of last year, it reported total revenue of 541 million baht and the net loss of 51 million baht.
It plans to launch two property projects this year, comprising a 6-billion-baht Hi-Line condominium and a 750-million-baht My Home Silver Lake project.
Source: thailand-everland-jv-arthit-ourairat-170m-hospital-project-30205
