Hong Kong’s Swire Pacific takes control of Shanghai healthcare provider DeltaHealth

Swire Pacific has completed the acquisition of DeltaHealth, a Shanghai-based healthcare provider specialising in cardiovascular treatments, as the Hong Kong-based group pursues healthcare as one of its key growth areas.

The property to aviation conglomerate, which first invested in the mainland Chinese company in 2021, said it was targeting new growth areas such as healthcare and that this was its first majority stake in a medical services provider. It comes close on the heels of an investment in an Indonesian healthcare group in December.

Swire Pacific did not provide details about its latest investment in DeltaHealth.

“We are very excited to be investing further into DeltaHealth and taking a controlling position,” said Guy Bradley, chairman of Swire Pacific, in a statement on Thursday. “Demand for high-quality healthcare is growing rapidly as income and living standards rise, and we anticipate demand for the treatment of cardiovascular disease to increase in line with these developments.”

Cathay Pacific Airways is part of Swire Pacific. Photo: Elson Li

DeltaHealth operates Shanghai DeltaHealth Hospital, which focuses on cardiovascular diseases, as well as DeltaWest Clinic, an outpatient clinic in the Gubei area of Changning district, to serve residents in Shanghai and the Yangtze River Delta, according to information on Swire’s website.

“DeltaHealth is one of the leading players in cardiovascular care in Shanghai,” a Swire Pacific spokesman said. “It has recently expanded into thoracic surgery and oncology, adopting a comprehensive multidisciplinary approach towards patient care.”

About 330 million people in China are affected by cardiovascular diseases including strokes, coronary heart disease, atrial fibrillation and hypertension among others, according to a 2021 report cited by the US National Library of Medicine.

Two out five deaths in China were caused by heart-related conditions, the report added.

In December, the conglomerate made its first healthcare investment in Southeast Asia via an agreement with the Indonesia Investment Authority for a joint investment in Indonesia Healthcare Corporation, which owns a majority stake in 37 hospitals and 66 clinics in the country.

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Swire Pacific has minority stakes in Columbia China Healthcare and SHH Core Holding in mainland China and Heal Medical Group in Hong Kong.

Columbia China owns and operates hospitals and senior housing in the Yangtze River Delta area, while SHH Core owns Shenzhen New Frontier United Family Hospital, a premium private hospital in Shenzhen.

Heal Medical Group operates four clinics in Hong Kong, namely Heal Oncology, Heal Aesthetic, Heal Medical and Heal Fertility.

Swire Pacific’s diversification strategy comes amid a subdued office property market in Hong Kong, where its real estate arm, Swire Properties, is one of the largest commercial landlords.

In March, the conglomerate reported record underlying profit of HK$36.2 billion (US$4.6 billion) for 2023, an increase of nearly eight times from a year earlier, mainly thanks to the post-Covid uplift from its aviation unit Cathay Pacific Airways.

Cathay reported its first annual profit in four years, netting HK$9.8 billion in 2023, compared with a net loss of HK$6.6 billion in 2022.



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