Nexgram Holdings Bhd will take six years to develop its proposed medical complex in Melaka, comprising a hospital building, a hotel, a condotel, and a service shop-office home-office.
Its wholly-owned unit, Nexgram Biomedic Sdn Bhd (NBSB), is buying a 10.03-hectare piece of leasehold land from Melaka State Development Corporation (PKNM) for the medical complex to be known as Melaka Lifecare Specialist, for RM61.53 million.
Both parties signed the sales and purchase agreement on July 1, Nexgram said in a filing with Bursa Malaysia recently.
Nexgram said the proposed land acquisition is part of its business expansion plan as it will provide the group with the opportunity to expand its property development and healthcare businesses.
"The acquisition represents a strategic investment for the group as the project is a public-private cooperation initiative that is in line with the Melaka government's push to further develop Melaka's economy in the next five to ten years. As such, the future prospect of the project is expected to be favourable," it said.
In a response to Bursa Malaysia's query on the proposed land acquisition on July 12, Nexgram said the expected date of commencement of the project will be after the title deed of the land has been issued (within the cut-off date or the extended cut-off date), with the expected completion date being six years after commencement.
Nexgram Biomedic signed an understanding with PKNM to acquire the land in April.
In an exchange filing back then, Nexgram said the acquisition of the land is expected to be developed as Melaka Lifecare Specialist that will command a gross development value of RM1.6 billion.
The medical complex will also feature a wellness centre, a bioscience research centre, retirement and medical tourism components, commercial and a recreation park.