Regency Hospital

completed

Established in 1989, Regency Hospitals Limited (“Regency” or the “company”) is a healthcare provider in Uttar Pradesh (“UP”), India. Regency currently operates three healthcare units in Kanpur in UP:Regency Multi-Specialty hospital - Established in 1995, this is the flagship unit of the company and currently operates a 175 bed facility. The hospital has a quality management system accredited by National Accreditation Board for Hospitals and Healthcare Providers (NABH) and is the first NABH accredited hospital in UP.Renal Science Center - Established in 2012 (in an owned building), this 75 bed hospital super-specializes in nephrology and urology. City Clinic – This is a satellite outpatient center established in August 2014 (in a leased building) to decongest the multi-specialty hospital. It focuses on premium OPD and preventive health checkups. The company also has a nursing school, Regency School of Nursing, which was established in 2009 to train nurses to meet the captive demand of the company. The school is located in a separate building owned by the company. The current batch size is 40 and total 120 students.The company has identified following five new expansion opportunities, two of which i.e. a secondary care hospital in south Kanpur and a cancer hospital under the HCG Joint Venture (JV) are in advanced construction stages. Secondary-care facility in Govind Nagar, south Kanpur: This will be a secondary care facility with 125 beds. This was a shopping center building, which has been leased by Regency and is being converted (by the owner as per Regency’s specifications) into a hospital. The building main structural system will remain as existing. The total built-up area is about 39000 ft2 (~3623 m2) with two basements, ground and six other floors. The floor area would be around 5500 ft2 (~511 m2) each. HCG Regency Oncology Healthcare Private Limited’s Oncology Center - This is a JV with HCG, a pan-India chain of super-specialty cancer care hospitals. HCG owns 51% of the JV while Regency owns the remaining 49%. Construction is underway for the first oncology hospital under the JV, a greenfield 100 bed unit (located in an owned building on a plot purchased by the JV) adjacent to the existing Regency multi-specialty hospital. The total built-up area is about 65000 ft2 (6252 m2) with two basements, ground and six other floors. The floor area will not exceed 800 m2. Expansion of existing multi-specialty hospital -The company has plans to expand the existing 175 bed hospital with a new block (in an owned building) having 150 beds on an adjacent piece of land. Land purchase has been completed and construction will begin soon. It is expected to start operations by April 2018.Regency Nephrocare Private Limited - This is a Joint Venture (JV) with Fresenius Medical Care India Private Limited. The JV plans to set up 14 dialysis centers over the next five years. Currently, two dialysis centers at the existing Renal Science Center and City Clinic are part of the JV. Nephrology Shop-in-Shops - Regency plans to enter into agreement with existing hospitals for management of their nephrology departments, where dialysis would be outsourced to Regency and Regency''s existing Renal Center will be utilized for transplant cases. IFC proposes to invest Indian Rupees 615 million (approximately US$ 9.45 million equivalent) through equity for the above expansion (“the project”). The remaining funding needs will be provided by other investors and external debt/internal cash generations.