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- The land, measuring 4.24 acres, is approved for the development of a private specialist hospital.
KUALA LUMPUR (Nov 19): Ibraco Bhd (KL:IBRACO) is disposing of approximately 4.2 acres of vacant land in Kuching, Sarawak for RM35.4 million, in a move aimed at unlocking the land’s value and supporting the expansion of private healthcare services in Sarawak.
The group expects to record a gain of about RM22 million from the transaction.
In a bourse filing on Wednesday, the property developer said it had entered into a sale and purchase agreement with NorthBank Specialist Hospital Sdn Bhd (NHSB) and Kuching Health Holdings Sdn Bhd for the land disposal.
The land, measuring 4.24 acres, is approved for the development of a private specialist hospital. It was acquired in 2011 at an original cost of RM1.44 million, and is currently unencumbered.
Under the agreement, NHSB will pay the consideration in stages, with 5% due upon signing and the remaining sums payable upon fulfilment of various milestones, including approvals from the state planning authority and the Ministry of Health.
The disposal is subject to several conditions precedent to be satisfied within two years from the date of the agreement.
Ibraco said the sale is intended to monetise the land while enabling Health Management International Pte Ltd, the parent company of Kuching Health Holdings, which is a regional healthcare provider, to expand its presence in Sarawak.
It said the proposed hospital is expected to enhance liveability within its NorthBank township and spur economic activity through job creation and demand for ancillary services.
Ibraco added that proceeds from the land disposal will strengthen its cash flow, with RM22 million earmarked to part-finance Phase 1 of the NorthBank Business Exchange, RM5.74 million for working capital, and the balance for expenses related to the disposal.
Shares of Ibraco closed unchanged at RM1.29 on Wednesday for a market capitalisation of RM704.4 million. Year to date, the counter has risen more than 6%.
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