Sunway Healthcare Holdings Berhad (SHH) is paying RM45.37 million for nearly 10 acres of freehold land in Sunway City Iskandar Puteri, Johor, as part of its expansion strategy to establish a new 410-bed tertiary hospital in the fast-growing southern region.
Sunway Medical Centre Sdn Bhd (SMC), the group’s 99.9%-owned subsidiary, has entered into a sale and purchase agreement (SPA) with Sunway Marketplace Sdn Bhd, Sunway Parkview Sdn Bhd, and Sunway Iskandar Sdn Bhd to acquire four adjoining parcels of land totalling approximately 9.918 acres.
The acquisition is considered a related party transaction because the vendors are Sunway Group entities. Sunway Marketplace and Sunway Parkview are entirely owned by Sunway Iskandar, a joint venture company of Sunway City Sdn Bhd, which is a wholly owned subsidiary of Sunway Berhad.
The proposed acquisition replaces a previous agreement signed in November 2024 for a leasehold interest in one of the land parcels. That agreement was terminated following the execution of the new SPA, which calls for the acquisition of freehold land instead.
Following a surrender and re-alienation exercise, the land will be combined into a single title and will be used to build SHH’s planned 410-bed hospital, which is expected to cost RM781.6 million in total.
SHH stated that the acquisition is consistent with the group’s strategy of expanding its network of tertiary hospitals to meet growing demand for private healthcare services in southern Malaysia.
After completion, the new hospital is expected to strengthen SHH’s healthcare portfolio and support its long-term growth strategy, as well as meet the region’s growing demand for specialist medical services.
The RM45.37 million acquisition will be funded with a combination of internally generated funds and external borrowings, as needed.
