KPJ Healthcare buys land in Johor for RM7 million

KUALA LUMPUR: KPJ Healthcare Bhd is buying a piece of leasehold land in Johor for RM7.07 million.

In a filing to Bursa Malaysia on March 31, its unit Pasir Gudang Specialist Hospital Sdn Bhd had on the same day entered a conditional sale and purchase agreement with Johor Land Bhd for the acquisition of the 3.25-acre land.

The acquisition is in line with the KPJ Group’s objective to expand its network of hospitals to locations where private healthcare is in demand, enlarge the customer base and further establish itself as a key service provider in the country.

The empty land, situated within a block known as Block D in Taman Bukit Dahlia, is under the category of “commercial”. It will be developed for use as a private specialist hospital.

The construction of the hospital will begin in the fourth quarter of this year, and completion is planned for end-2012, at a development cost of RM54 million.

The net book value of the land as at Dec 31 last year is RM2.4 million. The original investment cost of the land was RM800,192 in October 1995.