TDM: Build-and-sub-lease deal for new KMI Tawau hospital block now unconditional

PETALING JAYA (July 16): TDM Bhd said the Agreement to Build and Sub-Lease (ATBSL) for a new block at KMI Tawau Medical Centre, together with renovation works for its existing specialist hospital building in Tawau, Sabah, has become unconditional after all conditions precedent were fulfilled.

In a Bursa Malaysia filing on Wednesday, the group said all conditions precedent under Clause 4.1(a) to (e) of the ATBSL dated April 14, 2026 had been satisfied.

Following the fulfilment of the conditions precedent, TDM said the ATBSL is now unconditional and the parties will proceed with their respective obligations to complete the project in accordance with the terms of the agreement.

The project comprises, as previously announced, the proposed construction and sub-lease of a new specialist hospital building for KMI Tawau Medical Centre, as well as renovation works for the existing specialist hospital building.

The latest announcement follows a series of disclosures on the project made between September 2021 and April 2026, including the execution of the ATBSL in April this year.

The latest filing marks the completion of a key contractual milestone, allowing the parties to proceed with implementation of the hospital expansion project in line with the ATBSL. It does not introduce changes to the project's previously announced terms or financial metrics, which remain as disclosed in earlier filings.

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