OUE Lippo Healthcare: No decision on sale, plans for KL site; any evaluation preliminary

The plot of land sits near the Petronas Twin Towers and Jalan Bukit Bintang in the Malaysian capital.
The plot of land sits near the Petronas Twin Towers and Jalan Bukit Bintang in the Malaysian capital. PHOTO: AFP

SINGAPORE - OUE Lippo Healthcare (OUELH) on Tuesday (Nov 21) said that any evaluation on a prime plot of land in Kuala Lumpur is exploratory and preliminary, and no decision has been made on whether to sell the land or change its development plans.

OUELH made those statements before the market opened in response to Nov 20 reports in The Edge newspaper, which said that the healthcare services and facilities provider formerly known as International Healthway Corp was was "shelving" plans to develop the site and considering a sale.

The 1.17 acre, or 50,860 sq ft, site sits near the Petronas Twin Towers and Jalan Bukit Bintang in the Malaysian capital.

OUELH said that the company was "constantly evaluating potential opportunities so as to enhance value and capital allocation for the group and its shareholders".

"As part of such evaluation, the company may consider options available in relation to the group's assets and business including the land referred to in the articles but any such evaluation is exploratory and preliminary," the company said.

"No decision has been made by the company to sell the land (or to shelve any development plans)." The Edge had also reported that the site could be sold for as much as RM200 million (S$65.3 million), which would be more than double what was paid six years ago OUE paid six years ago.

OUELH responded: "There is no clear basis at this time for stating any expected valuation or expected returns on the sale of the land (if any)."