PETALING JAYA: Eastern & Oriental Bhd
's (E&O) wholly-owned subsidiary, KCB Holdings Sdn Bhd (KCB), has entered into a conditional joint venture (JV) agreement with Cengild Medical Bhd and Skyspring Sdn Bhd to develop a multidisciplinary tertiary private hospital within the Gurney Green district at Andaman Island, Penang.
In a release, E&O noted KCB will hold a 30% equity stake in the JV company while Cengild and Skyspring will hold 25% and 45%, respectively.
The JV company shall subsequently incorporate a wholly-owned operating company to undertake the development, establishment and operation of the hospital. Leveraging its established expertise in the healthcare sector specialising in digestive system and abdominal health, Cengild will provide clinical, operational and strategic management expertise to support the hospital's development and future operations.
The estimated total development cost for the proposed hospital is RM350mil. The hospital will be developed in two phases and is expected to have an estimated capacity of 240 beds.
E&O managing director Kok Tuck Cheong said, “This partnership marks another important milestone in the evolution of Andaman Island. As we bring our masterplan to life, we remain focused on creating a well-balanced waterfront township that integrates quality homes with the essential amenities and services needed to support a thriving community."
The proposed hospital is targeted for completion by the fourth quarter of 2029.
