[SINGAPORE] Pua Seck Guan made waves as the chief executive of then CapitaMall Trust – the first listed real estate investment trust here.
He led its manager when the trust listed in July 2002 and was CEO until November 2008. Under Pua, the Singapore retail-focused trust grew rapidly – driven by acquisitions, asset enhancements and active leasing.
Between the trust’s listing debut and end-2007, its unit price grew 260 per cent, distribution per unit rose 97 per cent and total return was 319 per cent. Asset size and market capitalisation grew 541 per cent and 712 per cent, respectively.
Could Pua, who succeeded in serving shoppers here, find another pot of gold this time by serving the Republic’s seniors?
Today, Pua is privately held Perennial Holdings’ executive chairman and CEO, as well as chief operating officer and executive director of Wilmar International.
Perennial is a leading private operator of eldercare and medical developments in China, where it manages more than 25,000 beds across 15 cities.
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Perennial Living
Recently, the group launched Perennial Living – Singapore’s first privately operated assisted living development – at Parry Avenue in the Rosyth estate. The project has 200 assisted living apartments, a 100-bed nursing home, a rehabilitation and wellness centre, and amenities such as a swimming pool and karaoke lounge-cum-movie theatre.
Perennial has invested S$260 million in land and construction costs for the project, which is being built on a 60-year leasehold site.
The entire facility, designed for seniors aged 65 and up across a spectrum of care needs, also sits next to a 1.5-hectare public therapeutic park being developed by Perennial.
Much buzz at Perennial Living’s launch was generated by the high fees for the fully furnished assisted living apartments, which comprise studio units, one-bedders and two-bedders, ranging from 302 to 593 square feet (sq ft).
Monthly rates range from S$8,900 to S$17,000, albeit there is an early-bird discount of between 10 and 20 per cent off the basic package.
A basic package covers accommodation, regular cleaning, housekeeping and linen services, core meals at an all-day dining restaurant, as well as access to amenities and activities. Additional services such as a la carte menu options, concierge services, medical or rehabilitation treatments, and grooming services are available at an extra cost.
Affordability
Take spending S$10,000 a month to stay at Perennial Living. Compared with the income of resident employed households in 2024, this sum is nearly 90 per cent of the median monthly household employment income including employer Central Provident Fund (CPF) contributions of S$11,297. It is also about 2.8 times the median monthly household employment income per household member including employer CPF contributions of S$3,615 in 2024.
After factoring in inflation, a stay costing S$10,000 per month or S$120,000 annually today could cost an average of S$160,000 per annum over 20 years or a total of S$3.2 million.
In contrast, community care apartments at Merpati Alcove in Geylang, with a 30-year lease and estimated floor area of 366 sq ft each, were sold for between S$102,000 and S$129,000 each at the October 2024 Build-To-Order exercise by the Housing and Development Board.
Every unit comes with pre-installed fittings and senior-friendly design features as well as a basic service package. Optional care services such as shared caregiving, social day care, housekeeping and meals are available at additional costs. Service provider Vanguard Healthcare estimates total cash flow requirement over 20 years for the basic service package at Merpati Alcove may amount to about S$72,000.
Eligible seniors aged 65 years and above can buy community care apartments on leases from 15 to 35 years. The chosen lease must last all buyers and their spouses until at least age 95.
Still, there are seniors who cannot buy such apartments. Crucially too, Perennial Living’s assisted living units – all of which have private lift access – target a niche market, namely the affluent seeking five-star hospitality and care services. Pua highlighted meals will be served in a setting that aims to emulate a Singapore Airlines first-class lounge.
Nonetheless, are Perennial Living’s charges prohibitively high? Perhaps not so for the target customers.
Take an elderly person who raises funds from selling a fully paid-up suburban terrace house for more than S$3 million to finance a 20-year stay at a Parry Avenue assisted living unit.
Also, consider a retiree who receives a five-digit monthly recurring income from a combination of renting out a home, other investments and annuity payment under CPF Life; or combines using passive income with drawing down savings.
Importantly, while life expectancy at age 65 for Singapore residents was 21.2 years in 2024, a person might only move to an assisted living facility when he is over 80 years old. And the said individual may then budget for a stay of possibly under 10 years.
Furthermore, an affluent senior who spends an average of a five-figure monthly sum funding the costs of going on overseas vacations, owning a car, dining out at fancy outlets, being a member at a recreational club as well as managing and maintaining a private home may simply be replacing such expenditure at some point with funding a stay at a luxury assisted living facility.
In perspective, spending say S$10,000 a month on luxury assisted living digs works out to around S$333 a day – slightly over half the average daily room rate for the luxury tier of hotels here of S$635 in July.
Value proposition
In short, Perennial Holdings’ challenge might largely lie with whether the target customers see value for money in its high-end eldercare offering here.
For one, could high-end assisted living facilities in the region offer better value than Perennial Living?
Recently, Thomson Medical Group announced a mega project that has a multi-disciplinary hospital, specialist suites, aged care and assisted living facilities, and healthcare ancillaries as well as luxury residences and hospitality, commercial and lifestyle elements.
Critically, many seniors here, including those who are physically or mentally frail, might strongly desire to live out the remainder of their days in the comfort of their own homes.
Ultimately, with support provided by close family members and/or domestic helpers, investment in making a home elder-friendly, efficient delivery services for medicine, meals and other goods as well as an evolving medical and eldercare ecosystem, many among the elderly may be able to age in place at home.
Undoubtedly, serving Singapore’s affluent seniors represents a big business opportunity. However, Pua will first need to persuade some of them that leaving one’s own home is for the better.
