KUALA LUMPUR: Aqar Australia Pty Ltd, a wholly-owned subsidiary of Al-`Aqar Healthcare REIT (Al-‘Aqar) has entered into a land sale contract (LSC) with Principal Healthcare Finance Pty Ltd to dispose of lands and buildings of Jeta Gardens Aged Care Facility in Australia for approximately RM74.9 million.
In a filing with Bursa Malaysia today, Al-`Aqar said the proceeds will be utilised for apportionment to Jade Aged Care Facility, buildings owned by Jeta Gardens, capital recycling and redemption of Al-`Aqar’s financing facilities as well as expenses related to the proposed disposal.
"Barring any unforeseen circumstances and notwithstanding the longer timeframe permitted under the contract, the proposed disposal is anticipated to be completed in the second half of 2024,” it said.
Simultaneously, it also said KPJ Healthcare Bhd
, through its subsidiaries, Jeta Gardens (QLD) Pty Ltd and its wholly owned subsidiary, Jeta Gardens Aged Care (QLD) Pty Ltd, has entered into a business sale and purchase agreement (BSA) with DPG Services Pty Ltd, involving the disposal of the business run by KPJ.
The business encompasses specific assets and liabilities associated with the operation of residential aged care services at Jeta Gardens Aged Care Facility.
It said the LSC and the BSA were interdependent, and as such, the proposed disposal is deemed a related party transaction under the Main Market Listing Requirements of Bursa Malaysia Securities Bhd.
"Al-‘Aqar made its foray into Australia’s aged care market in 2011 with a total investment cost of RM132 million, and upon completion of the LSC, the cumulative rental income will cover up to 99 per cent of the total investment cost,” it said.
The company noted that the decision to divest assets in the aged care sector was driven by changes in the Australian aged care industry landscape, and Al-`Aqar aims to eliminate risk exposure to these changes.
Through this transaction, Al-‘Aqar said it aims to capitalise on a market-driven offer and leverage the opportunity for capital recycling in higher potential assets.
Damansara REIT Managers Sdn Bhd, being the manager of Al-`Aqar, anticipates the acquisition of several local matured healthcare assets in the near term, and as part of its strategic vision, targets to double Al-‘Aqar’s portfolio value to approximately RM3 billion by 2028, up from the current value of RM1.7 billion. - Bernama
