Econ Healthcare (Asia) has, on June 11, entered into a shareholders’ agreement in relation to the establishment of a nursing home in China, its second one in the country.
The agreement was signed with Chongqing Guangda Bailingbang Eldercare Industry Group Co (Bailingbang) and Chongqing Mengxiangjia Technology Co (Mengxiangjia), the same joint venture partners for Econ Healthcare’s first nursing home, ECON Medicare Centre and Nursing Home at Chongqing Jiefangbei.
Under the agreement, Econ Healthcare, Bailingbang and Mengziangjia will hold 70%, 20% and 10% stakes in the joint venture entity, Changshou Yikang Bailingbangyanjia.
The joint venture company will run the planned nursing home, ECON Medicare Centre and Nursing Home – Changshou, which will be located in Changshou, Chonogqing. The home will have a capacity of 280 beds, with a built-up area of close to 7,200 square metres.
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The nursing home is expected to be operational in 2022, and will be targeted towards the middle to affluent elder market.
According to the group, the nursing home in Chongqing Jiefangbei which opened in May achieved a 30% occupancy rate in its first month of operation.
Econ Healthcare will also be opening its eighth nursing home in Singpore, ECON Medicare Centre and Nursing Home - Henderson, which has a 236 bed-capacity, in 2022.
“As an active participant in Singapore’s Action Plan for successful ageing, we bring our good practice and operating experience to the project in Changshou, together with the support of a strong joint venture partner like Bailingbang,” says Ong Chu Poh, founder, executive chairman and group CEO of ECON Healthcare (Asia).
“Our two nursing homes in China provide us the opportunity to adapt our services and business models to serve the needs of the middle to affluent elder market,” Ong adds.
As at 9.07am, shares in Econ Healthcare are up 0.5 cents or 1.49% higher at 34 cents.
Photo: Econ Healthcare
