Kuala Lumpur: Handal Energy Bhd’s wholly-owned subsidiary, Handal Hospitality Sdn Bhd (HHSB), has entered into a memorandum of agreement with Hartanah Azzahrah Sdn Bhd to facilitate the acquisition of two hospitals for a price not less than RM69 million.

According to BERNAMA News Agency, Handal Energy disclosed in a Bursa Malaysia filing that the company is moving to venture into the healthcare sector. The agreement outlines HHSB’s role as a liaison to identify a purchaser for acquiring Hospital Islam Az-Zahrah Bangi and Hospital Az-Zahrah Bandar Tun Hussein Onn.

Upon successful acquisition, the purchaser will lease the hospital properties to HHSB. Subsequently, HHSB plans to sub-lease them to Medi-Circle Sdn Bhd and Pusat Rawatan Islam Az-Zahrah Sdn Bhd, who will operate these facilities as private healthcare centers.

Handal Energy stated that this venture aligns with its strategy to diversify its business portfolio and leverage the expanding private healthcare sector’s stable long-term growth prospects. They aim to generate a stable and recurring income through long-term lease agreements for the hospitals.

The agreement specifies that the hospital properties will be leased for a 30-year term, with an annual rental rate set at 8.0 percent of the acquisition cost.