CBRE advised Trinity Medical Group (“Trinity”) on the set-up of a US$100 million equity joint venture with Mr. Ronald Chiu, a renowned property investor and former Head of Hong Kong at CLSA Capital Partners, and helped the joint venture secure the transaction of its first acquisition of a 4,718-sq. ft. commercial space, at No. 8 Russell Street in Causeway Bay, Hong Kong for HK$96.28 million.

Trinity Medical Group is a leading provider of comprehensive and premier-quality imaging and healthcare services in Hong Kong. In partnership with Mr. Ronald Chiu, Trinity plans to establish a medical property investment fund in Hong Kong.

The acquisition of the commercial space on 20/F, Emperor Watch and Jewellery Centre, 8 Russell Street, Causeway Bay will be the third medical imaging centre under the Trinity Medical brand in Hong Kong. This also marks the first significant investment commitment made by Mr. Ronald Chiu into Hong Kong’s dynamic healthcare industry, capturing the growth opportunities in the Greater Bay Area. The Joint Venture has budgeted HK$60 million CAPEX for installing medical imaging equipment such as Magnetic Resonance Imaging (MRI) into the said site.

“Trinity Medical Group is committed to safeguarding the health of our community through professionalism and high-quality services,” said Dr. Kevin Lau Chung-hang, Founding Executive Chairman of Trinity Medical Group. “The new Joint Venture will enable us to deploy a robust long-term medical real estate strategy by synergizing the real estate model with the professional medical operation, bringing a stable and high yield to our fund investor. The Joint Venture will also allow us to unite and support Hong Kong private medical entrepreneurs from various specialties to build a long-term, stable and one-stop medical ecology with the potential to satisfy growing demand, both local and from the broader GBA region. We seek to work with like-minded partners in developing real estate for medical imaging centers, day procedure centers, oncology treatment centers, postnatal care centers and medical-grade elderly care centers to create a wider medical wellness ecosystem and allow more entrepreneurs to achieve their dreams.”

According to HKTDC Research, the number of people aged 65 or above is projected to increase to 32% in 2041 from 20% of the total population in 2021. Meanwhile, the Food and Health Bureau revealed that the total public and private health expenditure in Hong Kong is around HK$199.9 billion (US$25.7 billion) in 2020-21, representing 7.3% of GDP.

“The ageing population and increased health consciousness among consumers in the region are boosting the demand for healthcare services and products. We look to capitalize on the opportunities from partnering with Trinity, a leading and authoritative force in healthcare, in what is expected to be a very promising sector as the GBA development plan further evolves,” said Mr. Ronald Chiu, the joint venture partner.

“As an SFC-licensed firm, our Capital Advisors team is delighted to help structure the joint venture between Trinity and Mr. Ronald Chiu through an Opco/Propco model. Under the partnership agreement, our CBRE Capital Markets team will also execute acquisitions of suitable medical use assets in line with Trinity’s brand and quality standard,” said Jonathan Chau, Executive Director, Head of Investment Property & Private Office, Capital Markets, CBRE Hong Kong.

“The establishment of this joint venture contributes to Hong Kong’s much-needed social infrastructure improvements. The structure is designed to promote the longevity of the city’s medical infrastructure through real estate. The deal really says something about how real estate finance is shaping up for Hong Kong. Both the sponsor and investor are an organically established operator and financier, respectively. It highlights the sophistication of local business and finance and the confidence in the healthcare sector in times of global economic uncertainty,” said Keith Tsang, Executive Director, Head of Capital Advisors, CBRE Hong Kong.

CBRE Capital Advisors is the investment advisory arm of CBRE, primarily offering capital raising, structured investments, and mergers & acquisitions. CBRE is currently the largest surveying firm holding SFC Type 1 and Type 4 licenses. Together with the EAA license, CBRE is wholly aligned with local regulations to deliver a full spectrum of real estate finance and investment advisory service.