KUALA LUMPUR (May 24): UOA Development Bhd is diversifying into caregiving services involving patients and senior citizens under a proposed joint venture (JV) which will enable the property developer to venture into the new business.
In a Bursa Malaysia filing today, UOA Development said the company today (May 24) entered into an agreement with Care Concierge Care Centre Sdn Bhd to jointly set up the caregiving business at Komune Living and Wellness Centre, a commercial building owned by UOA Golden Pines Sdn Bhd.
UOA Development said Komune Living and Wellness Centre is located in Cheras here while UOA Golden Pines is a wholly-owned subsidiary of UOA Development.
"The rationale for the JV is to venture into (a) new business. The JV is expected to contribute positively to the earnings of UOA Development in the future when the business is expanded.
"The management of UOA Development is optimistic about the prospects of the JV," UOA Development said.
According to UOA Development, a JV entity jointly owned by UOA Development's subsidiary Federaya Development Sdn Bhd and Care Concierge will be set up to undertake the caregiving business.
UOA Development said Federaya and Care Concierge will own 60% and 40% stakes respectively in the JV entity.
UOA Development said Care Concierge provides "independent home living, managed home care services, caregiving services for people who require assistance in their daily lives such as but not limited to the elderly, disabled, post-hospitalisation patients and post-operative patients".
According to UOA Development, the JV plans to "carry out the care services activities and develop and manage care/health facilities which may comprise but not be limited to a nursing home, medical centre, pharmacy, dental clinics, food and beverage area, recreational area and independent living units".
"The funds to be injected into the JV shall be satisfied by cash from (UOA Development's) internally generated funds," UOA Development said.
At 5pm today, UOA Development's share price closed three sen or 1.69% higher at RM1.80, which values the group at about RM3.82 billion.
UOA Development has 2.12 billion issued shares, according to its latest annual report.