Sunway Healthcare buys Iskandar Puteri land for RM45 mil in RPT for Johor expansion

KUALA LUMPUR (July 30): Sunway Healthcare Holdings Bhd (KL:SUNMED) is acquiring four parcels of freehold land measuring 9.918 acres in Sunway City Iskandar Puteri for RM45.37 million as it moves ahead with its Johor expansion.

The related-party transaction involves a sale and purchase agreement between its 99.9%-owned unit, Sunway Medical Centre Sdn Bhd, and Sunway Marketplace Sdn Bhd, Sunway Parkview Sdn Bhd and Sunway Iskandar Sdn Bhd, all part of the Sunway Group.

Sunway Healthcare earlier announced that it is developing a 410-bed hospital in Iskandar Puteri with an estimated project cost of RM781.6 million.

“The proposed acquisition is in line with the group’s overall strategy to expand its network of tertiary hospitals,” Sunway Healthcare said.

“The proposed development expands the group’s footprint into the state of Johor, capturing unmet demand for tertiary healthcare in the southern region,” it added.

The transaction is deemed a related-party deal as Sunway Marketplace and Sunway Parkview are wholly owned units of Sunway Iskandar Sdn Bhd, which is a joint venture company of Sunway City Sdn Bhd, under Sunway Bhd (KL:SUNWAY), which is also a major shareholder of Sunway Healthcare.

The proposed acquisition is expected to be completed by the second quarter of 2027. No shareholders' approval is required.

The acquisition will be funded through a mix of internal funds and bank borrowings.

At end-March, Sunway Healthcare's total licensed beds increased to 1,805 beds, while total bed capacity stood at 1,982 beds.

As at market close on Wednesday, Sunway Healthcare shares were down three sen or 1.54% at RM1.92, valuing the company at RM22.1 billion.

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