KUALA LUMPUR (Oct 16): KPJ Healthcare Bhd has reached a deal to lease a purpose-built hospital known as KPJ Damansara Specialist Hospital II, from Pelaburan Hartanah Bhd (PHB), which is to acquire the said hospital building from its developer Nadayu Properties Bhd and land owner Dinamik Serimas Sdn Bhd.

In a filing with Bursa Malaysia today, KPJ said its wholly-owned unit, Kumpulan Perubatan (Johor) Sdn Bhd (KJSB), has signed a memorandum of understanding (MOU) with Nadayu and PHB, regarding the development and lease of the hospital building in Mukim of Batu, Tempat Segambut, Kuala Lumpur.

Under the MOU, Nadayu shall develop at its own cost and handover a 300 bedded nine storey hospital building with a built up area of 459,000 square feet, and 636 car parking bays and all infrastructures, which is located on the 6.176 acres land.

PHB will then acquire the hospital building and land from Nadayu, as well as the owner of the land, Dinamik Serimas, and thereafter lease the property to KPJ for a period of 15 years, with an option to renew for another 15 years.

“The MOU is in line with KPJ and its subsidiaries objective to increase its network of hospitals to locations where private healthcare is in demand, enlarge the customer base, as well as other areas of healthcare services,” said KPJ.

It also aims to cater for the needs of the patients residing within the vicinity of Damansara—Sungai Buloh and surrounding areas, in order to meet the demand for quality private healthcare.

“Barring any unforeseen circumstances, the Definitive Agreements shall be executed within six months from the date of the execution of MOU and therefore, this MOU shall lapse thereafter,” said KPJ.

KPJ added that as the cost of transaction is not finalised as at the date the MOU is signed, the effect of the transaction to earnings, net assets and gearings cannot be determined.

“The appropriate disclosure will be made, when the definitive agreements are executed,” said KPJ.

KPJ closed 6 sen or 1.59% lower at RM3.71, giving it a market capitalisation of RM3.76 billion.