Al-'Aqar Healthcare REIT in RPT to buy hospital for RM78m cash

KUALA LUMPUR (Aug 27): Al-'Aqar Healthcare REIT is acquiring another hospital — KPJ Batu Pahat Specialist Hospital for RM78 million cash — to add into its list of properties under management.

In a filing with Bursa Malaysia yesterday, its management company Damansara REIT Managers Sdn Bhd announced that the trustee of the REIT AmanahRaya Trustees Bhd had entered into a conditional sales and purchase agreement with Johor Land Bhd, a wholly-owned subsidiary of Johor Corp, for the purpose of the acquisition.

Note that Damansara REIT Managers is also a wholly-owned subsidiary of Johor Corp, and that Al-'Aqar is 36% owned by KPJ Healthcare Bhd.

The proposal is deemed to be a related party transaction (RPT).

KPJ Batu Pahat Specialist Hospital is a seven-multi-storey purpose-built hospital building with a built-up area of 157,500 sq ft comprising structures, landscaping, installation, facilities and infrastructure together with car parks.

It has a capacity of 60 beds, with additional 30 beds for future expansion.

Damansara REIT Managers said the proposal is in line with the investment objective of Al-’Aqar to acquire and invest in properties with a view to increasing income stability. The proposal will also allow Al-`Aqar to enhance the size of its property portfolio, it added.

This article first appeared in The Edge Financial Daily, on Aug 27, 2019.

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