The health business trend in Southeast Asia is gaining momentum. CapitaLand (CLI), a major company from Singapore, is seizing this significant opportunity by partnering with Pruksa Holding to establish a real estate fund aimed at promoting health and wellness, named the CapitaLand Wellness Fund or C-WELL. The initial investment is approximately 8.75 billion baht (350 million Singapore dollars), with a fundraising target of around 12.5 billion baht (500 million Singapore dollars), and the potential to expand the fund to 25 billion baht (1 billion Singapore dollars). The targeted asset value from investments could reach up to 72.5 billion baht (2.9 billion Singapore dollars) when fully operational, capitalizing on the rapidly growing health asset investment opportunities in Southeast Asia, primarily focusing on the Thai, Singaporean, and Malaysian markets.

Mr. Uthen Lohachitpitak, CEO of Pruksa Holding Public Company Limited (PSH), stated, "CapitaLand Investment Limited, a leading global real estate investment management giant with a successful track record in Southeast Asia, is collaborating to establish the CapitaLand Wellness Fund or C-WELL because we see market changes driven by the increasing elderly population and the health impacts that may arise from the lack of adequate housing structures today. We anticipate that this trend will increase the demand for real estate catering to 'elderly care.' Last year, Pruksa began incorporating health care concepts from various sectors, including community care, Universal Design, and Multi-Gen Living into our developments. Through this collaboration via the C-WELL fund, we aim to leverage CLI's Ascott Hospitality platform and PSH's Vimut Hospital to enhance investment opportunities and improve assets focused on health and wellness. Our investment in C-WELL aligns with our goal of 'living well and happily' and our strategy to promote new business investments, diversify assets, and generate consistent revenue for the PSH group."

The C-WELL fund will be managed by CLI, aiming to invest in single projects or mixed-use developments to cater to a diverse customer base, such as health-focused hotels and residences, health centers, specialized hospitals, rehabilitation centers with medical services, and health and lifestyle residential solutions. Pruksa will bring expertise from Vimut Hospital, which aims to promote health and provide medical services under the organizational mission of "Caring for Life, Living Well and Happily." Meanwhile, The Ascott Limited, part of CLI, will be a strong partner, bringing asset management experience to manage the C-WELL fund's assets. This collaboration is a powerful synergy of partners working together to develop housing alongside health promotion for customers.

Demographic data and the growth of the elderly market in this region are driving demand for health services and housing. There is a strong emphasis on maintaining good health as people age, as most are interested in holistic and preventive health care for a better quality of life. The population aged 65 and older in Southeast Asia has exceeded 55 million and is expected to increase healthcare spending per person. According to Global Health Data Exchange, healthcare spending in Thailand rose from $323 in 2020 to $627 in 2050, while Singapore's spending increased from $3,512 in 2020 to $5,425 in 2050. This rising expenditure reflects a growing concern for health among people, leading to increased investments in preventive health products and services. By 2030, Thailand and Singapore are projected to enter an aging society, with populations aged 65 and older exceeding 21% and 24%, respectively. This trend is prompting increased investments in this sector from both public and private sectors. Additionally, the aftermath of the COVID-19 pandemic has contributed to a rising trend in preventive health investments, which not only enhances investment opportunities but also plays a crucial role in improving the overall well-being of society. C-WELL is committed to meeting the growing health demands and transitioning into an aging society by fostering an environment conducive to promoting good health, comfort, and a higher quality of life.

Ms. Patricia Goh, Managing Director of CapitaLand Investment Group (CLI) for Southeast Asia, stated, "Now is the right time for us to aggressively expand our business into the Southeast Asian region by extending real estate into health care. We see opportunities and the potential market value for products and services for the elderly, as well as the increasing longevity, higher net incomes, and changing lifestyles. Therefore, the popularity of health-focused real estate in this region continues to rise. This collaboration with PSH will strengthen our operations and resources, aligning with the C-WELL business strategy, which will open opportunities for investors and partners to engage in new businesses with high growth potential."

The C-WELL fund is the second fund established by PSH and CLI as part of their ongoing strategic partnership. Last year, they jointly established the CapitaLand SEA Logistics Fund, valued at over 25 billion baht, aimed at providing smart warehouse services and distributing products across all Southeast Asian countries.