KUALA LUMPUR (April 8): TDM Bhd has signed a heads of agreement (HoA) for the proposed construction and leasing of a specialist hospital building in Bandar Baru Tunjong, Kota Bharu, Kelantan.

In a filing with the bourse, TDM said its wholly-owned subsidiary Kumpulan Medic Iman Sdn Bhd (KMI) entered into the HoA with Mutiara Premier Sdn Bhd (MPSB).

Under the deal, MPSB will construct the building which will be able to accommodate 94 beds of single rooms with a minimum of 300 parking bays under Phase 1 of the project.

TDM said the project is in line with KMI’s expansion plan, with the company targeting to address demand for affordable private medical services in Bandar Baru Tunjong, which is strategically located near the East Coast Rail Link.

“The proposed project also aims to complete the expansion of KMI’s East Coast chain of hospitals, whereby currently KMI manages hospitals in Pahang and Terengganu, that will further enhance KMI’s brand visibility,” it added.

MPSB will then lease the specialist hospital building to KMI, and subject to viability, MPSB and KMI will discuss a potential expansion of the building for an additional 100 beds and 300 parking bays under Phase 2 of the project.

The lease will be for a term of 15 years and renewable for another 15 years.

MPSB will be funding the development of the proposed project, with an estimated gross development cost of RM129.36 million for Phase 1.

“Growth prospects for the  healthcare sector in Bandar Baru Tunjong is likely to be positive over the long term.

“Factors such as an increasing ageing population, rising affluence, greater demand for more sophisticated treatment, outsourcing of public healthcare and growing adoption of private medical insurance will fuel industry growth,” said TDM.

The proposed project is expected to be completed in the first quarter of 2026, it said.

TDM’s share price closed one sen or 3.4% lower at 28.5 sen on Thursday, giving it a market capitalisation of RM491.02 million.

Edited by S Kanagaraju

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