Skip Ribbon Commands
Skip to main content

News Release

Bangkok

​Provincial Hospitals Attract Bangkok-Based Investors

Increased healthcare expenditures, aging population and strong growth in medical tourism in Thailand have turned hospitals into another commercial real estate type that receives strong investor interest.


Increased healthcare expenditures, aging population and strong growth in medical tourism in Thailand have turned hospitals into another commercial real estate type that receives strong investor interest.

Hospitals are increasingly becoming another commercial real estate asset in Thailand that is receiving strong interest from investors in the healthcare industry. According to JLL, a professional services firm specialising in real estate, the key factors that are driving this trend include increased healthcare expenditures, aging population and strong growth in medical tourism in the country.

Mrs. Suphin Mechuchep, Managing Director of JLL, said: “When talking about real estate investments, people generally think of four key property sectors—office, retail, residential and hospitality. In reality, real estate investment also takes place in other sectors, such as healthcare, manufacturing and logistics. Healthcare, in particular, is a sector where real estate investment has recently become very active.”

Recent market evidence shows an interesting trend of investors acquiring hospitals. Over the past two years, all of the publicly announced hospital investment transactions took place outside Bangkok, with the buyers being Bangkok-based hospital operators. For example, Bangkok Dusit Medical Services (BDMS) purchased the 281-bed Phuket International Hospital (formerly Siriroj Hospital). Bangkok Chain Hospital (BCH) acquired stakes in Navanakorn Medicare Co Ltd which operated Navanakorn Hospital in Pathumthani (200 beds) and Navanakorn General Hospital Ayudhya (105 bed). After the acquisition, the two hospitals were renamed to Karunvej.  BCH also acquired Sotaravej Hospital in Chachoengsao with 200 beds. 

“Acquiring existing private hospitals has appeared to be a preferred investment option, as these assets come with hospital licenses. While quality hospitals were purchased at a premium, some investors acquired hospital assets that were undermanaged, and then upgraded their facilities and services and rebranded them.” said Mrs. Suphin. “However, there are very few hospitals that are offered for sale at present,” she added.

JLL has been appointed to sell one in a major resort and expatriate hub near Bangkok. It is a modern and well-managed private hospital on a 4-rai plot of land and comprises four buildings with a combined gross floor area of 11,000 square metres and room to expand. The asset has been offered for sale through an expressions-of-interest campaign, which will close in December this year. A rare investment opportunity, the hospital has received strong investor interest.

Improved domestic purchasing power in provincial areas and growing demand from Thailand’s neighbouring countries due to the superior quality of Thai healthcare services and facilities have both boosted the demand for medical treatments outside Bangkok. Large Bangkok-based healthcare providers and private hospitals have started to fill this niche by acquiring provincial hospitals across the country. For this reason, JLL expects hospital sales and acquisition activities in the healthcare sector to continue, although transaction volumes may be limited by the scarcity of supply available for sale.​