According to JLL, hospitals in Thailand are receiving strong interest from investors, especially those in the Bangkok-based healthcare sector, and are now being viewed as a real estate asset. Some of the factors behind this movement include increased healthcare expenditures, an aging population and strong growth in medical tourism in the country.
“When talking about real estate investments, people generally think of four key property sectors—office, retail, residential and hospitality, Suphin Mechuchep, managing director of JLL, said. “In reality, real estate investment also takes place in other sectors, such as healthcare, manufacturing and logistics. Healthcare, in particular, is a sector where real estate investment has recently become very active.”
JLL points out there is market evidence showing a trend of investors acquiring hospitals. Bangkok-based hospital operators made all of the recent publicly announced hospital sales and everyone of these sales took place outside of the city. Examples include: Bangkok Dusit Medical Services (BDMS) being purchased Phuket International Hospital (formerly Siriroj Hospital), and Bangkok Chain Hospital (BCH) acquiring stakes in the Karunvej Hospitals in Pathum Thani and Ayudhya and in Sotaravej Hospital in Chachoengsao.
“Acquiring existing private hospitals appeared to be a preferred investment option, as these assets come with hospital licences. While quality hospitals were purchased at a premium, some investors acquired hospital assets that were undermanaged, and then upgraded their facilities and services and rebranded them,” Mechuchep added.
With provincial areas having more spending power than ever before along with growing demand from Thailand’s neighbouring countries due to the quality of Thai healthcare services and facilities, demand for medical treatments outside of Bangkok continues to increase. However, while JLL said it expects hospital sales and acquisition activities in the healthcare sector to continue, it was also noted that transaction volumes may be small due to the limited supply available for sale.
Image: Phuket International Hospital (formerly Siriroj Hospital) was recently purchased by Bangkok Dusit Medical Services (BDMS).
