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Sinophi Healthcare signs Operating Agreement with Beijing Enterprises for Yuan Fang Senior Care and Rehabilitation Hospital

August 19^th 2013

Sinophi Healthcare Limited today signed an agreement with Beijing Enterprises Group Senior Industry Investment & Management Co. to complete the development and commissioning work, and to commence the operations of Beijing Enterprises’ Yuan Fang Senior Care and Rehabilitation Hospital.  This is located at the historic Yuan Fang Hotel site in Beijing’s Chaoyang District, close to the Third Ring Road.

Construction work on this 326 bed facility will finish in October and the senior care centre will open at the end of 2013.  The commissioning and licensing of the rehabilitation hospital is targeted for completion in time for the planned opening at the end of Q2 of 2014.

Architect rendition of the BG Yuan Fang Senior Care and Rehabilitation Hospital

The senior care centre will provide the full range of high quality residential retirement care ranging from assisted living to nursing care, dementia care and hospice care.  The rehabilitation hospital will deliver international standard rehabilitation treatment and services. These include physical therapy, occupational therapy and speech therapy as well as other key medical services.  The hospital will focus on both in-patient and out-patient services to accommodate the needs of the local population.

There is a severe shortage in Beijing of rehabilitation medical care required for seniors following a stroke, heart attack or orthopedic surgery.  In line with the Municipal and National Governments’ policies for healthcare development, Yuan Fang Senior Care and Rehabilitation Hospital will work closely with local general hospitals to support the ongoing care and treatment needs of this large and growing sector of the population.   The hospital has excellent subway and road access.

Yuan Fang Senior Care and Rehabilitation Hospital is expected to be the first project to be jointly invested, operated and managed by Beijing Enterprises, Sinophi Healthcare and Morgan Stanley Private Equity. Today’s agreement commences the execution of the plans outlined in the Cooperation Agreement signed by the three partners on July 31^st 2013.  It is the first of the initial three senior care and rehabilitation hospital projects in Beijing identified in the Cooperation Agreement.  The partners plan to build a leading brand in senior care and rehabilitation hospitals in China.

Sinophi CEO Dr Hanif Kanji said “This is one of the many well located sites our Beijing Enterprises partner will be bringing to our senior care and rehabilitation focused partnership together with Morgan Stanley.  We are delighted with the strong support Sinophi is receiving from both our Beijing Enterprises partner and from the Beijing City and Chaoyang District Governments.  Yuan Fang Senior Care and Rehab Hospital is part of Beijing City Government’s vision for improving and delivering new senior care and rehabilitation facilities, with Sinophi delivering international standards of care, management, operations and governance.”

Sinophi Chief Operating Officer Gong Yong Qiang commented “The high standards and demanding timetable set by Beijing Enterprises fit very well with Sinophi’s international and local experience in setting up and opening hospitals.  The joint Project Team is already working on setting up the turnkey commissioning process for both the senior care and rehabilitation facilities, starting the hiring and training of all of the medical, nursing, therapy, care and administrative teams, and developing international standardized operating procedures for care delivery.”

Typical Assisted-Living and Nursing Care Room

Information about Beijing Enterprises Senior Industry Co and Morgan Stanley Private Equity:

Beijing Enterprises Group Senior Industry Investment & Management Co. is a part of Beijing Enterprises Group Company Limited.   BEGCL is one of the largest state-owned enterprises in Beijing.  Its subsidiaries include Beijing Enterprises Holdings Real Estate Co.; Beijing Gas Group; Yanjing Beer Corp; Beijing Enterprises Water Resources, and Beijing International Airport Highway Corp. among others.  Bei Kong Senior Investment is a specialized company with the core business of senior care investment, development, operation and management.

Morgan Stanley Private Equity is a global private equity platform under Morgan Stanley, a US listed company.   MSPE has been engaging in private equity investing since 1985 and has invested over US$6 billion.  It has a strong track record of global healthcare investments and is actively reviewing investment opportunities in China’s healthcare and senior industries.