MAG Group signs $217mn JV for Healthcare City
Development expected to include two new hospitals
Dubai-based MAG Group has signed a joint venture (JV) agreement with Dubai Healthcare City to develop a $217mn (AED800mn) one million square feet mixed-use project.
The development, which is still at the concept design stage, is expected to include two hospitals covering a total of 260,000ft2, plus an 80,000ft2 clinic; a residential complex of four buildings with combined gross floor area of 430,000ft2; a hotel apartment with a gross floor area of 80,000ft2 and 100,000ft2 of retail space.
The development, which is due to complete by the end of 2016, will also include a mosque and one of the most advanced automated car parks and extensive hard and soft landscaping.
Moafaq Al Gaddah, chairman of MAG Group, said: “The healthcare sector in Dubai is on the cusp of a sustained period of growth and will need to build medical facilities for the future. This expansion is being fuelled by numerous factors.
“First the natural growth in the local population and in the number of expatriate arrivals as the economy expands, looking ahead to Expo 2020. Two, the growth of private health insurance due to changes in government employment policy and Dubai’s growing status as a medical tourism hub for the Middle East,” he added.
According to the DHA, total inpatient visits to healthcare centres grew by a CAGR of 9%, between 2006 and 2011 totalling 183,000 visits in 2011. By that time almost 57% of all inpatient facilities were in private hands, as inpatient visits to private healthcare centres grew by a CAGR of 18% over the same period and a clear sign of changing preferences in Dubai.
Outpatient visits to private healthcare centres grew by a CAGR of 8% between 2006 and 2011. The private sector now dominates outpatient care, with 73% of all outpatient visits in 2011.
The Healthcare City project announcement comes hard on the heels of MAG Group’s recent flurry of announcements at Cityscape Global last year, which included a $544.5mn (AED2bn) development in Meydan, consisting of residential townhouses and low-rise apartment buildings and a $122.5mn (AED450mn) retail area specialising in interior design and decorative products. Located in the emerging suburb of Al Barsha 2 and branded the ‘Art Center’, it is scheduled for handover in 2015.