FBG Holdings seeks to exit Penang Medi-City project in Batu Kawan
Artist impression
FBG Holdings Bhd, formerly known as Fajarbaru Builder Group Bhd, is seeking to withdraw from the joint development of the Penang Medi-City project in Batu Kawan.
The construction firm said its wholly owned subsidiary, FBG Land Sdn Bhd, had written to the Penang Development Corp (PDC) to cease proceeding with the collaboration under the master purchase and development agreement (PDA). FBG proposed that both parties discuss an orderly conclusion of the existing collaboration.
FBG Land and PDC are currently discussing the proposed cessation, with the company saying further announcements will be made upon any material developments or once the terms and conditions are agreed.
The PDA for the first phase of Penang Medi-City was signed in January 2025. The 235.8-acre project was planned as a mixed development incorporating healthcare and wellness facilities alongside residential, retail and commercial components.
Under the agreement, FBG was to acquire a 51.2-acre Parcel 1 in Bandar Cassia for RM111.5 million. The parcel was expected to generate a gross development value of RM2 billion over eight years.
FBG had previously undertaken a rights issue with free warrants to fund the land acquisition. In December last year, the exercise raised RM54.9 million through the issuance of 304.995 million rights shares.
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