KPJ unit to renovate, sub-tenant Damansara Specialist Hospital 2 suite

KUALA LUMPUR: KPJ Healthcare Bhd's wholly-owned unit Rawang Specialist Hospital Sdn Bhd has proposed to sub-tenant the royal suite of Damansara Specialist Hospital 2 (DSH2) to Johor Corp (JCorp) following renovations to the hospital.

In a filing with Bursa Malaysia, the healthcare provider said it has accepted an agreement with JLG & BP Design Sdn Bhd for renovations at DSH2 for RM15.9mil.

The transaction is deemed a related party transaction as JLG & BP is a 60%-owned subsidiary of Damansara Assets Sdn Bhd, which is in turn an indirect subsidiary of JCorp, the major shareholder of KPJ.

KPJ said the renovation works will include one royal suite measuring about 6,800 sq ft and six presidential suites measuring about 8,000 sq ft in total.

It added that the renovation works commenced on Feb 9, 2024, and will be completed on Sept 30, 2024.

Rawang Specialist Hospital has a tenancy agreement with Pelaburan Hartanah Bhd, the owner of DSH2, for a period of 15 years with the option to renew for another 15 years.

Subsequent to the completion of the proposed renovation, Rawang Specialist Hospital intends to enter into a sub-tenancy agreement with JCorp for the royal suite, commencing Oct 1, 2024, to Jan 30, 2029, at a rental rate of RM111,666 per month.