Kuala Lumpur: KPJ Healthcare Bhd’s wholly owned subsidiaries have entered into two separate conditional sale and purchase agreements to dispose of properties to Al-‘Aqar Healthcare REIT for RM241 million. The properties involved in this transaction are the new buildings of KPJ Ampang Puteri Specialist Hospital (APSH) and KPJ Penang Specialist Hospital (PSH), which are owned by Ampang Puteri Specialist Hospital Sdn Bhd and Penang Specialist Hospital Sdn Bhd, respectively.

According to BERNAMA News Agency, as part of the proposed sale, the subsidiaries will lease back the properties from Al-‘Aqar trustee AmanahRaya Trustees Bhd, with JLG REIT Managers Sdn Bhd (JLGRM) managing the leases. KPJ Healthcare has indicated that the cash proceeds will be allocated to repay bank facilities amounting to RM100,000, working capital valued at RM139,000, and estimated expenses for the proposed sale and leaseback totaling RM2,000.

The proposed leasebacks are set for 11 years for the APSH and 15 years for the PSH, both with an option for a 15-year renewal. It is stipulated that the properties must be used strictly for healthcare operations in accordance with Shariah principles. Additionally, KPJ, through its subsidiaries, will enter into four separate lease renewal agreements with the trustee and JLGRM, involving multiple facilities including PSH, Taiping Medical Centre, TMC Health Centre, KPJ Seremban Specialist Hospital, and others.

The lease renewal subsidiaries, the trustee, and JLGRM signed memoranda of extensions on March 25, 2025, to update terms and lease extensions. KPJ Healthcare stated that the proposed sale and leaseback will allow the KPJ group to unlock the value of the disposed properties, while the proposed lease renewals will ensure that KPJ group operations remain undisrupted.

The company anticipates that, barring any unforeseen circumstances, these proposals will be concluded in the second quarter of 2025.