KUALA LUMPUR (Jan 20): Turnkey contractor Fajarbaru Builder Group Bhd (KL:FAJAR) has signed the master purchase and development agreement with Penang Development Corp (PDC) for the first phase of the Penang Medi-City project in Batu Kawan, set to position the state as a regional medical tourism hub.

To achieve this vision, Fajarbaru Builder has also entered into strategic collaborations with various partners to enhance the project's impact, including Pelaburan Hartanah Bhd (PHB), Solarvest Holdings Bhd (KL:SLVEST), KJTS Group Bhd (KL:KJTS), and Cellaax Sdn Bhd, according to filings with Bursa Malaysia. 

The Medi-City project, spanning 235.8 acres, is a comprehensive development incorporating healthcare and wellness into residential, retail, and commercial components, said Fajarbaru Builder in a statement. 

As part of the agreement, Fajarbaru Builder will acquire Parcel 1 of the project, measuring 51.2 acres, for RM111.5 million, to be funded through a mix of bank borrowings and internally generated funds. 

The development of Parcel 1 is projected to have a gross development value of RM2 billion over eight years. A profit-sharing arrangement has also been established, ensuring that PDC will receive RM36.8 million over the same period.

Fajarbaru Builder, which is also a property developer, said it plans to dedicate at least 30% of Parcel 1 to healthcare and medical facilities, which will include a 200-bed specialist hospital, a healthcare complex, and a wellness centre. 

The remaining 70% of the area will feature mixed-use developments aimed at fostering a balanced urban environment. 

PHB will explore the development of facilities such as an international school and additional healthcare infrastructure, while Solarvest will provide renewable energy solutions to promote sustainability. 

KJTS will implement a district cooling system designed for efficiency, while Cellaax will establish a stem cell facility to enhance the medical hub's ecosystem.

Fajarbaru Builder group executive chairman Tan Sri Chan Kong Choy highlighted the transformative nature of the project, describing it as a testament to the shared ambition between the group and PDC to establish Penang as a world-class medical hub. 

"This visionary development will integrate a wide range of healthcare solutions from preventive care, diagnostic care to post treatment, rehabilitation and wellness, creating an ecosystem that embodies modern healthcare and holistic living. 

"Likewise, by collaborating with key partners, we hope that this will spearhead the development of the project leveraging their respective strengths and delivering a comprehensive ecosystem with sustainability in mind, staying true to our motto of being the makers of tomorrow,” he said. 

In the vision to develop Medi-City as a net-zero township, Solarvest will explore the viability of integrating clean energy solutions into the properties, including solar photovoltaic systems, electric vehicle (EV) charging infrastructure, EV fleets, energy efficiency measures, battery energy storage systems, and green attributes trading.

Solarvest group chief executive officer Davis Chong Chun Shiong said the net-zero township ambition aligns with national aspirations to accelerate green transformation and achieve carbon neutrality by 2050.

"As a green infrastructure developer, Solarvest is proud to bring its expertise to the table, ensuring that every aspect of Medi-City’s energy solutions aligns with industry best practices in sustainability," he said in a separate statement. 

"This partnership is setting a precedent for a sustainable medical hub, and highlights the synergy between property developers and clean energy infrastructure providers, bringing to life a township that epitomises environmental stewardship," Chong added. 

Fajarbaru Builder shares closed unchanged at 36 sen on Monday, with a market capitalisation of RM268.1 million. 

Meanwhile, Solarvest rose three sen or 1.74% to close at RM1.75, with a market capitalisation of RM1.27 billion. KJTS was up 1.5 sen or 1.74% at 87.5 sen, with a market capitalisation of RM602 million.