Construction group to pull out of MediCity project in Penang

A company involved in a proposed MediCity project in Penang has announced it is seeking to end its collaboration with Penang Development Corporation (PDC) for the proposed joint development.

In a filing with Bursa Malaysia today, construction and property development group FBG Holdings Bhd said its wholly-owned subsidiary FBG Land Sdn Bhd had written to PDC proposing “an orderly conclusion” to the existing collaboration under the master purchase and development agreement.

It said discussions are currently being held and further announcements would be made upon any material development or once the parties reach an agreement on the terms and conditions, Bernama reported.

The Penang MediCity project at Bandar Cassia in Batu Kawan was to include a 200-bed specialist hospital, a wellness centre, and a healthcare complex. A commercial area to be known as FBG Global Park would contain an international school and residential areas comprising serviced apartments and villas. The first phase of the project was projected to have a gross development value of RM2 billion.