IHH buys HK land to build hospital, to spend RM2b

by **Cals** Thu 14 Mar 2013, 03:21

IHH buys HK land to build hospital, to spend RM2b
Business & Markets 2013
Written by Fatin Rasyiqah Mustaza of theedgemalaysia.com
Wednesday, 13 March 2013 18:11

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KUALA LUMPUR (Mar 13): GHK Hospital Ltd, a 60%-owned indirect subsidiary of IHH Healthcare Bhd, has acquired a land grant and service deed from the Hong Kong government for RM675 million to build a private hospital.

In a note to Bursa Malaysia, IHH said the project will involve a capital investment of HK$5 billion (RM2 billion), which is inclusive of land cost of HK$1.68 billion (RM675 million).

The hospital is projected to be fully developed and scheduled to commence operations in 2016.

The group said upon completion of the project and commencement of the operation of the hospital, the profit contribution from the hospital will enhance its future earnings.

According to the group, the project will not have any effect on IHH’s issued and paid-up capital. And there will be no impact on the group’s earnings for the financial year to end-2013.

The Li Ka Shing Faculty of Medicine of The University of Hong Kong will act as the clinical partner of the hospital and oversee its clinical governance, professional standards, hiring and training of doctors, nurses and allied healthcare staff.

The hospital will provide a full range of clinical service with more than 15 specialties, including general medicine, surgery, orthopedics, gynecology and others, with 500 beds.