A unit of IHH Healthcare has bought a land parcel in Hong Kong for HK$1.69 billion (S$271 million) to build and run a new private hospital.

The total capital investment required for the new hospital is pegged at HK$5 billion, inclusive of land acquisition costs.

The Singapore and Malaysia‐listed healthcare group said yesterday that GHK Hospital  ‐ 60 per cent owned by its Parkway HK Holdings and 40 per cent by Media Year Investments  ‐  had signed a memorandum of agreement and conditions of sale and service deed after winning the tender for Aberdeen Inland Lot No 458, Nam Fung Path, Wong ChukHang.

The plot measures 27,500 square metres and offers a maximum gross floor area of 46,750 sqm.

The hospital is slated to commence operations in late 2016, once construction has been completed, and will hold 500 beds. IHH added: "Going forward, upon completion of the project and commencement of the operation of the hospital, the potential profit contribution from the hospital is expected to enhance the future
earnings of the group."

Source: AmFraser