- CEHR to lead development of the RM1.1 billion integrated edu-city project
- First of its kind uniquely modelled PPP in the country
- Expected completion of project in three years
Ipoh, October 27, 2015: Green Venture Capital (GVC), a subsidiary of Wawasan Qi Properties Group (WQIP), today signed a Memorandum of Agreement with China Energy Hua Ren Industrial Investment Co., Ltd. (CEHR) to facilitate the China based entity to lead the construction of the RM 1.1 billion Qi City Development project in Bandar Meru Raya, Perak.
CEHR’S entry into the Qi City development marks a significant chapter in GVC’s journey towards becoming a fully integrated property developer in the education and healthcare sector. With this partnership, GVC hopes to reap the benefits and enjoy the synergies as a result of this collaboration not the least thanks to the pedigree of the China based conglomerate.
GVC is a Special Purpose Vehicle (SPV) which was established to spearhead the Qi City Development which is a subsidiary of WQIP. Perak State Secretary Incorporated (SSI) is also an equity partner in GVC. WQIP was incorporated in 2006 and has since been managing the QI Group’s investment activities in Malaysia and abroad.
The MOA signed today signals a partnership between GVC and CEHR for the duration of this project which is expected to take three years to complete from the date of commencement.
CEHR is involved in five principal business and operations which include International Trade and Engineering, Energy Exploitation and Management, Real Estate Investment and Construction, Culture Media and Education. The Company has business ventures in Asia, Africa, Europe, US, South America and the Caribbean.
This is the second foray into Malaysia for CEHR as it is the main investor and majority shareholder in the Yan Petroleum Industrial Zone (Zipy) in Kedah.
Speaking at the MOA Signing Ceremony today, Y.B. Dato’ Mohd. Zahir Abdul Kalid from the Perak State Secretary’s Office said: “We are very happy with this partnership as it will have a huge impact on the state economy and further promote China-Malaysia bilateral ties.
“The teaching hospital is in line with the Perak State Government’s aspirations to become an education hub.
“Furthermore, Qi City’s edu-city project not only serves to enhance and strengthen Perak’s economic growth, it will also be a catalyst for job creation and investment opportunities into the state. The State Government is committed to providing any assistance to continue to facilitate this business venture until its completion.”
This development comprises a teaching hospital with public and private wings, Quest International University Perak (QIUP) campus, three condominium blocks, retail outlets, a medical rehabilitation centre, a convention hall to cater for up to 1,500 people and hotel suites.
The teaching hospital which would comprise a public wing with 600 beds and a private wing with 240 beds is truly a uniquely modelled PPP concept, with the idea that the private wing and the collaborative components of the development would subsidise the operational expenditure of the public wing.
Qi Group of Companies Executive Chairman Dato’ Sri Vijay Eswaran said: “This international collaboration brings us a step closer to achieving our vision of creating a first of its kind education and medical hub in the country. CEHR entry’s into the Qi City project is significant as it is a testament to the strength and potential of this uniquely modelled development. This MOA affords us access into knowledge and expertise and an exchange of skills and technologies to bring this development to fruition.”
GVC had commissioned a comprehensive study to determine and understand the healthcare issues facing the country.
Dato’ Sri Vijay added: “With our model, we will create a more efficient cost structure both for development and the operations of the hospital. We will achieve this by putting in place cross subsidy measures and a collaborative cost model with other components of the development that results in a fundamentally lower expense structure that ultimately benefits the rakyat.
“We hope that this will usher in a new era in the public and private healthcare sector in the country.”
Qi City, expected to start construction in 2016, will be located in close proximity to the central business district of Bandar Meru Raya and key government offices. Other landmarks that surround the development include a private international school; an animation theme park; a hyper market; and a business hotel.
GVC Chief Executive Officer Chandragesan Suppiah said: “This is a win-win partnership for us as we have found a partner who understands the benefits of our unique funding model and is open to working with us in this project. We hope that this will be the first step in the direction to build and provide more teaching hospitals in this country as it will also spur medical tourism for Malaysia.
“The infrastructure of the development is designed to attract specialists from diverse fields to teach in the medical faculty, to conduct research and to practice in the public and private wing. What sets this project apart is that we will be providing multi-platforms and functions of exchange that will mutually benefit students, lecturers and doctors. We have planned and created a work, study and living environment that provides amenities and makes this a self- sustainable development to address the needs of visitors, patients, students and residents.”
GVC, he added does not discount the possibility of further raising funds from sukuk or conventional bonds.
CEHR Chairman of the Board Mr. Wang Wei said: “This strategic alliance will give us a further understanding of the Malaysian market and allow to be part of a viable investment venture in this part of the region. We look forward to collaborating in developing similar models nationwide.”
The ceremony today also included the signing of a lease agreement between GVC and QIUP for the new campus of the university.
About Green Venture Capital Sdn. Bhd.
GVC is a Special Purpose Vehicle (SPV) which was established to spearhead the Qi City Development is a subsidiary of Wawasan Qi Properties (WQIP). Perak State Secretary Incorporated (SSI) is also an equity partner in GVC. WQIP was incorporated in 2006 and has since been managing the QI Group’s investment activities in Malaysia and abroad.
About China Energy Hua Ren Industrial Investment Co., Ltd.
CEHR is involved in five principal business and operations which include International Trade and Engineering, Energy Exploitation and Management, Real Estate Investment and Construction, Culture Media and Education. The Company has business ventures in Asia, Africa, Europe, US, South America and the Caribbean.
