IHH Wins HK$5 Billion Bid to Build Private Hospital in Hong KongRachel Evans and Lulu Yilun Chen
IHH Healthcare Bhd., Asia’s biggest hospital operator, won a HK$5 billion ($645 million) bid with NWS Holdings Ltd. to build its first private hospital in Hong Kong.
The hospital, which will be built in the city’s Aberdeen district, is expected to start operations by January 2017 and will offer clinical services in 15 specialties, according to a statement from the Food and Health Bureau.
Hong Kong’s government last April invited bids from local and overseas parties to develop hospitals in two locations in the city as it looks to increase capacity in the healthcare system and provide consumers with more choice. The IHH-NWS proposal, through its 60-40 joint venture GHK Hospital Ltd., was one of three submissions received by the Food and Health Bureau, the department said in today’s statement.
The hospital “will give priority to local patients” with Hong Kong residents accounting for 70 percent of the intake, said Patrick Lam, an executive director at NWS Holdings, the service, infrastructure and ports operator controlled by the family of billionaire Cheng Yu-tung.
The development, which includes HK$1.688 billion to purchase land, will be financed with internal funds and bank loans, NWS said in a statement to the Hong Kong stock exchange.
The hospital project “allows the group to expand its scope of business into the healthcare industry, which aligns with the company’s long-term strategy in strengthening its service portfolio in Hong Kong,” NWS said in the filing.
NWS is controlled by the family of Cheng, who is 36th on the Bloomberg Billionaires Index with a net worth of $19.6 billion. Cheng’s family also invests in real estate and controls the world’s biggest jeweler.
IHH, controlled by Khazanah Nasional Bhd. and Mitsui & Co, saw fourth-quarter profit rise almost fourfold from a year earlier after expanding into Europe, according to company filings last month.