The future is in senior care and living units, says THG after successful
SENIOR CARE and living services will increase the cash flow for the Thonburi Healthcare Group or THG in December and the first quarter of next year, said Tanatip Suppradit, its vice president.
The group also received positive feedback from its recent roadshow in Kuala Lumpur, Singapore and Hong Kong, he said yesterday.
So far 164 buyers have booked senior care and living units at the Jin Wellbeing County project located in Rangsit, Tanatip said.
The group and home buyers will start to make ownership transactions in December this year, so quick-cash flow will increase by the end of this year and first quarter next year, he said.
The group is ready to make home transactions for 494 units out of a total 1,380 units, with prices between Bt4 to Bt6 million per unit.
The monthly average booking on residential units are about 20 units now, he revealed.
Apparently, those who buy senior living units plans to stay not only for investment purposes, since buyers age over 50 years and 60 years account for 80 per cent and 63 per cent respectively, he said.
The Jin Wellbeing County project aims to attract the upper-middle income group or those whose income is Bt80,000 monthly.
The THG has also launched a new senior care and living residential project in Pracha Ulthit area. The Thonburi Health Village with 412 units aims to attract the middle income group. Unit prices start from Bt1.9 million, with sales for the residential units scheduled to start in September next year.
Tanatip said that the general hospital business has started to reach saturation in Thailand. The industry has to look for new business opportunities, such as specialised hospital and wellbeing services for senior citizens, he said.
“The THG spots a rising demand of senior care and living services due to our ageing society, so we’re trying to meet market demand,” Tanatip said.
“Other medical service operators and property developers are watching whether our projects will be successful,” he added.
Property developers have so far been reluctant to launch senior care projects. As they are not specialists in medical services, they could offer only a universal design for their residential units, he said.
He assured that the group will not be constrained by rising expenses for medical doctors and nursing staff in senior living projects, as it they could train caregivers to provide nursing with each in charge of four rooms. The senior living project does not need more physicians or nurses, he said.
Over the past two years, the group has invested about Bt5-6 billion in its core business of medical services and related businesses.
The group recently to the road in Malaysia, Singapore and Hong Kong and received good feedback from investors who are looking for opportunities in the healthcare sector.
They know that Thailand has been recognised as a medical hub and the high quality of services in the region, Tanatip said.
For new investments overseas, Ar Yu International Hospital, a joint venture with a local partner in Myanmar, has started to operate and will have a grand opening ceremony in December, he said.
The group revenue in the first half of this year was Bt3.4 billion, up from Bt3.1 billion in the first half of 2017. Revenue from its core business of medical service grew 9.2 per cent year on year. Net profit was Bt230 million, up from Bt225 million in the same period last year.
Tanatip expected the group revenues would grow about 10 per cent next year.
