MSPEA, Sihuan Pharma sell China hospital

MSPEA and Sihuan control Huaiyin, also known as HY Hospital, via a holding company called Renfang Medical alongside Sihuan chairman Fenghseng Che. MSPEA, Sihuan, and Che hold approximately 57%, 38%, and 5% positions in Renfang.

Renfang invested RMB803.7 million for an undisclosed stake in Huaiyin in December 2014. The buyer, Hong Kong-listed CR Medical, is an investment platform of state-owned China Resources, which has a portfolio of hospitals with more than 10,000 beds.

Jiangsu-based Huaiyin is the largest general hospital in its region with 1,190 operating beds. This compares to 1,085 beds at the time of MSPEA and Sihuan's initial investment. It claims that a development plan implemented during the past several years has made it the leading hospital in Huaiyin district.

There are about 1,200 staff covering more than 40 medical disciplines for a community of 900,000 people. Specializations include orthopedics, general surgery, neurology, and urology. The hospital recorded revenue of RMB493.5 million in 2020, while profit fell from RMB49.7 million in 2019 to RMB10.1 million in 2020, according to a filing.

MSPEA and Sihuan have worked together since 2009 when the GP supported Che in a delisting of the business in Singapore and subsequent relisting in Hong Kong. They have significant experience in China's hospital space. At the time of their Huaiyin investment, they also acquired a 69% stake in Nanjing’s JB Hospital for RMB409.3 million. This followed closely on MSPEA’s first investment in the space, maternity hospital operator Baijia.

MSPEA invested in Huaiyin via its fourth pan-Asia fund, North Haven Private Equity IV, which closed in 2014 at $1.7 billion.

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• Topics
• Healthcare
• Exits
• Trade sale
• Greater China
• China
• Morgan Stanley Private Equity Asia