Introduction of Korea's First Healthcare Welfare Facility 'Healthcare REITs'

Invitation for Bidders for Pilot Project on Medical Welfare Facility Site in Hwaseong Dongtan 2

The Ministry of Land, Infrastructure and Transport and Korea Land & Housing Corporation (LH) announced on the 14th that they will invite private businesses to participate in the 'Healthcare REITs' project on medical welfare facility sites within the Hwaseong Dongtan 2 housing development project area.

The location where the country's first healthcare REIT for medical welfare facilities is introduced. (Provided by the Ministry of Land, Infrastructure and Transport)

If selected as a REITs operator, the entity will be able to publicly offer and list shares to the general public under the Real Estate Investment Company Act, and own and operate senior housing for at least 10 years. Accordingly, the selected private business will establish a healthcare REITs and develop a complex including senior housing, which can become a landmark of the Hwaseong Dongtan 2 district, as well as medical, office, commercial, cultural, and residential facilities. Rental, operation, and sales profits will be distributed as dividends to the public shareholders, and plans to publicly offer and list REITs shares will be pursued in the future.

Healthcare REITs is the first of its kind in Korea but is a large market in the United States, valued at approximately 125 trillion KRW, and is a continuously growing sector as society enters an aging era.

The project site covers about 56,000 pyeong (186,487㎡) and is expected to become a new regional landmark through private business development, as it boasts excellent scenery with nearby golf courses, green spaces, and rivers.

It is located about a 10-minute drive from Dongtan Station, which provides access to SRT, GTX-A (scheduled for March 2024), Dongtan-Indeokwon Line (scheduled for 2029), and Dongtan Urban Railway Lines 1 and 2 (scheduled for 2027).

The Ministry of Land plans to receive letters of intent from participants in early 2024 and will focus evaluations on △ landmark-type senior welfare housing construction plans, △ healthcare service plans, △ stock offering plans and dividend yields, and △ regional win-win measures, with the aim of selecting a preferred negotiation partner by April next year.

Nam Young-woo, Director of Land Policy at the Ministry of Land, said, "This healthcare REITs project is expected to contribute to the housing stability of seniors, provide new real estate investment opportunities to the public, and establish a successful case that private businesses can use as a foundation for new business models within the healthcare market."

This content was produced with the assistance of AI translation services.