KUALA LUMPUR: Penang Development Corp has offered Fajarbaru Builder Group Bhd (FBG) a 95.4 hectare land area in Batu Kawan, Penang to be developed into a medicity which will house health and medical facilities, residential, retail and commercial projects.
FBG said it had accepted the Letter of Offer dated Oct 7, 2024 from PDC for the proposed joint development project between PDC and FBG known as MediCity in Batu Kawan through a purchase and development arrangement on the freehold land in Bandar Cassia, Batu Kawan, Penang.
The initial development will be on a 20.7 hectare plot of land it will purchase for RM111.5 million in 2025.
Profit sharing for the first project will be payable by FBG to PDC at a minimum rate of 15 per cent or more of the mixed development (residential and commercial).
The first project will have a 200-bed specialist hospital.
The remaining parcel of land will be purchased at a later date.
The development will be funded by a combination of internally generated funds, bank borrowings, and equity funding, the proportion of which will be determined at a later stage.
FBG said the joint development with PDC presents an opportunity for the FBG Group to expand its business activities in property development and/or construction projects in Penang that will be beneficial to the FBG Group, including but not limited to the development of MediCity.
FBG's share price was up 1.2 per cent to 43 sen a share, giving it a market capitalisation of RM320.2 million.