International Healthway Corporation

International Healthway Corporation (“IHC”) owns an attractive and high-quality portfolio of healthcare assets such as nursing homes in Japan, hospital in Wuxi (China), hospital landbank in Chengdu (China), and landbank in Kuala Lumpur. However, due to the firm’s aggressive expansion, the firm has a weak balance sheet with a high debt level. As a result, IHC’s share price trades at a sharp 48% discount to NAV due to the loss of shareholders’ confidence in the management team and the fear that the firm might need to raise capital 

Engagement Topics: 

  • Support the appointment of new directors at the Extraordinary General Meeting on the 23rd of Jan 2017 to lead a turnaround in operations 
  • Securitization of Japan nursing homes into a listed REIT in Japan or Singapore to unlock capital to reduce debt and fund expansionary healthcare projects 
  • Sale of partial/full stake in non-core land bank in Kuala Lumpur to reduce debt level 


  • New directors were successfully voted in at the Extraordinary General Meeting 
  • Takeover Offer from OUE Limited for IHC at a premium of 39% above the VWAP share price of past 12 months 
  • Quarz exited the position with a return on investment of 46%