Pruksa has decided to invest THB 4.9 billion to develop a mid-range hospital with 250 beds in the next few years, local media reports. The clinic will be located in the Saphan Khwai and the developer thinks the facility will help it expand into Thailand’s growing healthcare business.
The name of the new facility will be Vimutti Hospital and construction is scheduled to begin by the third quarter of this year. The hospital will open in 2020. It will be a middle-end segment healthcare facility with accreditation from the Joint Commission International. The facility should be profitable by the third year of operations, according to estimates from Pruksa.
This will be the company’s first project in the health and wellness sector and comes after Pruska completed a restructuring of its business which started in February of last year, says Pruska Chief Executive Thongma Vijitpongpun.
Pruksa Real Estate was de-listed from the Thailand Stock Exchange last November and in its place Pruksa Holding was listed. The hospital project will allow the reorganised company to diversify into recurring-revenue property and non-residential developments.
“Opportunity abounds in the healthcare business, as the market growth is triple the growth rate of the country’s gross domestic product,” says Thongma to the Bangkok Post. “We know the healthcare business is highly competitive, but we love competition.”
Research from SCB’s Economic Intelligence Center, the Public Health Ministry and the World Health Organisation shows that Thailand’s healthcare market grew by an average 8.7 per cent a year between 2004 and 2016. It is estimated that the healthcare market value in the country was THB 658 billion last year.
The company also remains committed to its residential business and recorded THB 2.6 billion in presales in January. Pruksa currently has 174 residential projects worth a combined THB 89.47 billion for sale.
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