Sunway Group unit to acquire hospital property for $98m

The property is currently leased by the company to operate a medical centre.

Malaysia-based Sunway Group’s healthcare unit has proposed to acquire a hospital building in Selangor from a trustee of its real estate investment trust (REIT) for a consideration of $97.62m (RM430m), the company said in a bourse filing.

The proposed acquisition by Sunway Medical Centre (SMCSB), a 99.99%-owned subsidiary of Sunway Healthcare Holdings, entailed the purchase of the lands and buildings known as “Tower A & B of Sunway Medical Centre” from RHB Trustees, a trustee of Sunway REIT.

The property is currently leased and used by SMCSB to operate a medical centre, a 7-storey purpose-built hospital building with a lower ground floor annexed with a multi-storey car park block and a convention centre.

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“The Proposed Acquisition is part of Sunway Healthcare Group’s plan to rationalise and streamline its decision on capital expenditure enhancement and value preservation on its assets by having full ownership and control,” the company said.

SMCSB previously disposed of the Property to Sunway REIT for a total disposal consideration of $70.37m (RM310m) at the end of December 2012.