This article first appeared in The Edge Financial Daily, on November 12, 2015.

KUALA LUMPUR: Zecon Bhd has invited Universiti Malaysia Sarawak (Unimas) to take up a 20% stake in a special purpose vehicle (SPV) which will undertake the development of a commercial block of the Unimas health metropolis project in Sarawak. In return, Unimas is providing land for the Unimas health metropolis project.

In a filing with Bursa Malaysia yesterday, Zecon said it had signed a memorandum of understanding with Unimas’ business arm Unimas Holdings Sdn Bhd (UHSB) to set out the relationship of the parties to collaborate with each other to secure the award of the Unimas health metropolis project to Zecon or the SPV.

“Upon the award of the project, the parties will execute a management agreement to set up the roles of the parties, and UHSB shall be accorded a 20% shareholding in the SPV for the commercial block,” said Zecon.

Zecon said it intends to participate in the Unimas health metropolis project that involves the development and construction of a 300-bed hospital, 90-bed nurses’ hostel, an annex academic block, and a commercial block consisting of a nine-storey hotel and serviced apartments, a 12-storey apartment, a 10-storey office tower and three-storey shophouses.

“Zecon shall manage all matters in technical and price submissions, price negotiations, pursuing the appropriate authorities to issue the letter of intent, and subsequently the letter of award to undertake the project, design, construction and completion of the project,” it added.