Bhd has teamed up with one of Hong Kong’s top property developers to build a 500-room private hospital in the special administrative region to tap into the growing demand for quality healthcare services there.
IHH, which is majority owned by Khazanah Nasional Bhd, through its 60% subsidiary GHK Hospital Ltd won the bid by way of public tender to purchase a total site area of 27,500 sq m with a maximum gross floor area of 46,750 sq m in Wong Chuk Hang on which the private hospital will be developed.
The remaining 40% in GHK Hospital is held by Media Year Investments Ltd, a wholly owned subsidiary of NWS Holdings Ltd, a public company listed on the main board of the Hong Kong Stock Exchange.
NWS Holdings in turn is a 60.7%-owned subsidiary of New World Development Co Ltd, one of the top four developers in Hong Kong listed on the exchange.
According to an announcement by IHH, the project will involve a capital investment of (HK$5 billion) (RM2 billion), which is inclusive of the cost for buying the site, amounting to HK$1.68 billion (RM675 million).
“The said capital investment, including land cost, will be funded by internally generated funds and bank borrowings, the breakdown of which has yet to be determined at this juncture,” IHH said.
The hospital is projected to be fully completed and scheduled to commence operations in 2016.
The group said in its statement that upon completion of the project and commencement of operations, the potential profit contribution from the hospital is expected to enhance its future earnings.
The hospital will provide a full range of clinical services with more than 15 specialties, including general medicine, general surgery, orthopaedics and gynaecology, with a total capacity of 500 beds.
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, appointment of doctors and the training of doctors, nurses and allied healthcare staff.
IHH’s expansion into Hong Kong was expected as the healthcare group had revealed its plans to expand there when it was going for listing in July 2012.
In its prospectus, the company had revealed that it intended to bid for two landmark sites with a minority shareholder in Hong Kong with the objective of developing premium tertiary hospitals.
IHH has established a flagship clinic in Hong Kong and plans to expand the network there.
IHH is the leading healthcare service provider in the region. It has a large presence in Singapore and Malaysia with a division in Turkey.
Earlier this week, IHH announced an internal restructuring of its entity in Turkey where all its interests will be placed under Acibadem Sagliky Yatirimlari Holdings, one of IHH’s core subsidiary.
IHH has posted excellent growth in its first full-year results since its IPO. Its net profit surged 276% year-on-year to RM195.9 million for its fourth quarter ended Dec 31, 2012.
The improved performance was underpinned by higher revenue stemming from the group undertaking more complicated procedures, as well as higher patient admissions. The increase in net profit was on the back of a 87% hike in revenue year-on-year to RM1.52 billion.
source:mymedicnews