Sunway Healthcare's RM228.5m hospital property deal turns unconditional

Sunway Healthcare Holdings Bhd's RM228.5 million acquisition of the lower 12 floors of Tower A at Sunway Medical Centre Velocity in Kuala Lumpur has become unconditional. The balance of RM205.65 million is payable by Jan 29, 2027, and the deal will add 90 beds to the hospital's capacity.

PETALING JAYA (Oct 30): Sunway Healthcare Holdings Bhd’s proposed RM228.5 million acquisition of the lower 12 floors of Tower A at Sunway Medical Centre Velocity in Kuala Lumpur has become unconditional, with the RM205.65 million balance payable by Jan 29, 2027.

In a Bursa Malaysia filing on Thursday (Oct 29), the group said all conditions precedent under the sale and purchase agreement had been fulfilled, triggering a three-month completion period from the same day. Its subsidiary, Sunway Medical 3C4 Sdn Bhd, formerly known as Sunway Iskandar Medical Centre Sdn Bhd, signed the agreement on Dec 24, 2025 with Sunway Integrated Properties Sdn Bhd.

The vendor is wholly owned by Sunway City Sdn Bhd, which is in turn wholly owned by Sunway Bhd. The acquisition was classified as a related party transaction. The purchase covers approximately 24,858 sq m (267,569 sq ft), spanning the ground to 10th floors, including a mezzanine floor comprising two intermediate levels known as levels 1A and 1B.

According to the group’s prospectus dated Feb 27, 2026, the property stands on part of freehold parent Lot 20048, Section 90, in the locality of Jalan Peel, Kuala Lumpur, held under master title Geran 79671. The prospectus stated that the RM228.5 million cash consideration matched the property’s market value as assessed by an independent valuer using the investment method.

At the time of the prospectus, the group was renting three floors of Tower A from Sunway Integrated Properties. The group had earmarked RM255 million of its initial public offering proceeds to partly fund the outstanding purchase consideration and equipment-related capital expenditure. The latter was estimated at RM86 million, covering medical and ward equipment, renovation, IT infrastructure, furniture and fittings.

The prospectus envisaged an additional 90 beds following completion of construction and installation of medical and operational equipment in Tower A, increasing Sunway Medical Centre Velocity’s capacity from the 247 beds reported at that time.