KUALA LUMPUR (Oct 30): Mexter Technology Bhd, which is already involved in the provision of mother and childcare-related services, is proposing to change its name to LYC Healthcare Bhd to better reflect its business ventures into the medical, healthcare and healthcare-related business.

In a filing with Bursa Malaysia today, Mexter said its 70%-owned wellness unit LYC Living Sdn Bhd has entered into a conditional consultancy and project management agreement with LYC Venture Sdn Bhd in relation with the development of a 10-acre piece of land in Genting Sempah, Pahang into a medical, healthcare related and wellness community known as "LYC Wellness Valley" with an estimated gross development value of RM558.53 million. Soh Hoo Hong owns the remaining 30% in LYC Living.

Concurrently, Mexter also inked a shareholders agreement with Soh to facilitate the provision of the project services, as well as to govern the relationship between Mexter and Soh as the shareholders of LYC Living.

Soh, a London architecture graduate, will be appointed CEO of LYC Living, and will spearhead the project.

LYC Venture had on Sept 26 entered into a sale and purchase agreement to acquire the land for RM21.78 million. LYC Venture is 99%-owned by Lim Yin Chow. Lim is also a controlling shareholder of LYC Capital Sdn Bhd, which owns 20.14% in Mexter.

Under the agreement, LYC Living will undertake provision of general consultancy, advice and project management to facilitate the construction, sale and development of the 99-year leasehold land.

"The proposed development of LYC Wellness Valley is expected to be carried out over a period of six years. The development of LYC Wellness Valley is expected to commence in 2019 and is targeted to be completed by 2025," said Mexter.

LYC Wellness Valley will feature a medical centre, a retirement home, a medical tourism hotel, service apartments and retail buildings.

"LYC Living stands to gain 8% from the sales of properties within LYC Wellness Valley," said Mexter, which also provides e-manufacturing solutions and services in electronic and energy products.

“The costs to be incurred by LYC Living in providing the project services will be funded via internal funds, advances and/or borrowings from financial institutions, if required,” it added.

In line with the proposed LYC Wellness Valley tie-up, Mexter is seeking to include three segments of the healthcare services into its business operations. The first is the provision of consultancy and project management services for the development, construction and sale of integrated healthcare and wellness development.

Secondly, Mexter wants to become a healthcare service provider, with operations including but not limited to managing and operating the wellness related hub.

Thirdly, Mexter is seeking to provide retirement home and aged care facilities and services in two double-storey bungalows in Jalan Duta here, after another 70%-owned unit LYC Senior Living Sdn Bhd agreed back in May to become a tenant at rental rates of RM11,000 and RM11,500 respectively.

“The first retirement home is expected to commence operation in November, while the second retirement home is expected to commence operation around March 2019,” said Mexter.

Shares of Mexter closed half a sen or 1.08% higher at 47 sen today, giving it a market capitalisation of RM152.69 million.