Radium Development to diversify into healthcare with 140-bed hospital in Melaka

• Radium Development said its wholly owned healthcare unit, A Famosa Specialist Hospital (Malacca) Sdn Bhd (AFSH), plans to construct a hospital on a 7.11-acre site in Bukit Katil, Melaka.

KUALA LUMPUR (April 4): Property developer Radium Development Bhd (KL:RADIUM) has announced its entry into the healthcare sector with plans to operate a 140-bed hospital in Melaka.

In a bourse filing on Friday, Radium Development said its wholly owned healthcare unit, A Famosa Specialist Hospital (Malacca) Sdn Bhd (AFSH), plans to construct a hospital on a 7.11-acre site in Bukit Katil, Melaka.

ASFH signed a sale and purchase agreement with Winbond Properties Sdn Bhd to purchase the leasehold land for RM25.5 million on Sept 9, 2024. The agreement is yet to be completed. Additionally, the total development cost has not been disclosed.

Radium Development stated that the venture covers hospital operations, medical services, building development for operation and leasing, and facility planning. It is in talks with a potential partner and plans to finalise the agreement soon.

Nevertheless, Radium Development said it is negotiating and engaging with a potential business partner for a healthcare collaboration, with both parties intending to formalise an agreement in due course.

It intends to fund the preliminary costs and expenses through internally generated funds and bank borrowings.

Construction of the hospital is set to commence in the second half of 2025, subject to regulatory approvals, with completion and operational launch targeted for the first half of 2028.

No profit contribution is anticipated from its healthcare business in the next three years, as the hospital remains in the preliminary stage of construction, it added.

Radium Development said its move into the healthcare business is because it is a growing sector with the potential to generate recurring income, ensuring a stable and reliable long-term revenue stream.

Radium shares closed unchanged at 49.5 sen on Friday, giving it a market capitalisation of RM1.72 billion. For the past one year, the stock has gained 12.5%.

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