SINGAPORE (Dec 12): OUE Lippo Healthcare has entered into a non-binding letter of intent (LOI) with China Merchants Shekou Industrial Zone Holdings, to jointly develop, operate and manage a high-end international hospital in Shenzhen, China.

The hospital located in Shekou is expected have more than 200 beds serving the local community, and tapping into the medical tourism industry in the Guangdong-Hong Kong-Macao Greater Bay Area.

The two companies will be setting up an offshore joint venture company, of which each will hold a 50% shareholding interest in it. The offshore JV company will in turn hold a 100% shareholding interest in an onshore company, which will hold the land use rights to the land for the development of the hospital.

Lee Yi Shyan, chairman of OUE Lippo Healthcare, says, “As a leading region for new and high technological industries in China, the Greater Bay Area will develop as a dominant economic powerhouse in the coming years. When completed, our international hospital in Prince Bay will be well-placed to cater to the growing demand for specialised and quality healthcare services in the area.”

Shares in OUE Lippo Healthcare closed 0.4 cent higher at 5.9 cents on Wednesday.