PETALING JAYA (Aug 18): TMC Life Sciences Bhd's flagship hospital, Tropicana Medical Centre (TMC), has allocated about RM300 million from its internally-generated funds and borrowing for its new extension block, to the existing hospital which is expected to be completed by the second half of the calendar year 2020 (2HCY20).

The group's recently-appointed chief corporate officer and chief executive officer of TMC, Wan Nadiah Wan Mohd Abdullah Yaakob, said the current TMC building was built on one-third of a 6 acres of land and the new expansion occupies another one-third of the remaining land, leaving another 2 acres for future development.

"This expansion is just the first phase in building a larger platform to offer advanced healthcare services and solutions to patients across the region," she said in her speech at the groundbreaking ceremony at its premises located at Kota Damansara today.

Sprawling across 2.4 acres of land, the 3-years project is projected to be completed with a full capacity of 600 beds, from 200 beds currently, 10 comprehensive operating theatres, 10 centres of excellence, more than 100 specialist clinics, new retail and food & beverages outlets and over 1,000 parking bays. 

Together with its affiliate, the group is also venturing into a new integrated medical hub — Thomson Iskandar — which will be developed in the proposed Vantage Bay Healthcare City in Johor Bahru. 

Thomson Iskandar is spread across 4.139 acres of land and is expected to attract medical tourism from Singapore and across the region. 

It is managed in partnership with Singapore-based Thomson Medical Group and upon completion, will house a 500-bed tertiary hospital, specialist medical suites and related health and wellness facilities. 

"First phase will be here (TMC Kota Damansara) and the second phase will be the hospital in Johor (Thomson Iskandar), as the planning is already done. It is currently awaiting for the final approvals from the regulatories, before commencing construction works," Wan Nadiah said during the press conference. 

Currently, medical tourism has contributed up to 15% to group revenue. With the new expansion at Johor, the group is targetting about 30% of its revenue to be contributed by medical tourism. 

It is notable that Thomson Iskandar project is completely a greenfield project and the cost is about RM1.2 billion. 

"We are still looking at the various options, either from the borrowing or corporate exercise and we are looking at the range of about 70% to 80% from RM1.2 billion for Johor project, if we were to make the cash call for the capital market," group chief financial officer Jimmy Wong Yu Chee said.

Wan Nadiah said construction for TMC new building project will kick start in October this year, while Thomson Iskandar will commence construction by end of this year, subject to regulatories approval.

"We expect the expansions to contribute positively to our earnings before interest, tax, depreciation and amortisation and profit after tax in the second year, which is by 2022," Wong said. 

At midday break today, TMC Life Sciences shares remained unchanged at 75 sen, with 273,000 shares traded, for a market capitalisation of RM1.31 billion.