Handal Energy Expands Into Healthcare Sector With RM69 Mln Hospital Venture

KUALA LUMPUR, March 3 (Bernama) -- Handal Energy Bhd’s wholly-owned subsidiary Handal Hospitality Sdn Bhd (HHSB) has signed a memorandum of agreement with Hartanah Azzahrah Sdn Bhd to facilitate the acquisition of two hospitals worth at a price of not less than RM69 million.

In a Bursa Malaysia filing today, Handal said they intend to venture into the healthcare sector.

“The agreement involves HHSB acting as a liaison to procure a purchaser to be identified for the acquisition of Hospital Islam Az-Zahrah Bangi and Hospital Az-Zahrah Bandar Tun Hussein Onn,” it said.

It said that upon successful acquisition, the purchaser will lease the properties to HHSB, which will then sub-lease them to Medi-Circle Sdn Bhd and Pusat Rawatan Islam Az-Zahrah Sdn Bhd to operate as private healthcare facilities.

Handal said the agreement aligns with its strategy to diversify its business portfolio and tap into the growing private healthcare sector, which offers stable long-term growth prospects.

“If successful, the group aims to generate a stable and recurring income through long-term lease agreements of the hospitals,” it said.

The group said that under the agreement, the hospitals will be leased for a 30-year period with an annual rental rate of 8.0 per cent of the acquisition cost.

-- BERNAMA