KUALA LUMPUR, Nov 18 – Sunway Bhd is expected to build its health care portfolio as it seeks to list the division.
The company will spend RM1.5 billion build six hospitals over the next two to five years, and is also looking to increase the number of beds at its flagship Sunway Medical Centre (SMC) in Bandar Sunway, here, to 1,100 from 617 currently.
“Tan Sri (Jeffrey Cheah) has said he wants to go for an initial public offering (IPO) of the health care division to raise funds. We think the IPO may start with SMC. As to when (the IPO will launch), we are not sure yet,” Sunway Healthcare Services managing director Lau Beng Long told the New Straits Times.
Cheah, who is Sunway Group founder and chairman, said in 2017 that the group planned to list its health care business within two years.
From the RM1.5 billion, to RM400 million would be spent to expand SMC, which comprises Tower A, B and C. Two new blocks — Tower D and E — are under construction.
A sixth tower (Tower F) may be added pending planning approval.
“Tower D and E will be ready by the end of 2021. Altogether, we will have 1,000 beds in SMC by then. Tower F will add an additional 100 beds,” Lau said, adding that by 2024, Sunway’s health care division would have a total of 2,000 beds from 857 currently.
The six new hospitals would be built at Sunway’s other townships across the country.
In Penang, Sunway will open a 180-bed hospital-cum-nursing home in Seberang Prai by mid-2021, as well as a 120-bed rehabilitation hospital in Paya Terubong.
“Construction will likely start at the end of next year. There are a few big hospitals in Penang but the state lacks rehabilitation centres for stroke and heart patients, among others. This is the market that we are targeting in the northern region.”
In Johor, Sunway looks to construct a 300-bed hospital in the RM12 billion Sunway Iskandar, a joint-venture (JV) township development between the group and Khazanah Nasional Bhd, which will commence construction in the third quarter of 2020.
Sunway will also develop a 200-bed hospital coupled with assisted living facilities and a nursing home in Tambun, Perak, as well as a 250-bed hospital in Kota Damansara.
“The hospital in Tambun may commence construction in the third quarter of next year, while the one in Kota Damansara is expected to be ready by end-2022.”
“We are also planning to build a hospital in Kota Baru. It has been approved by the Health Ministry,” added Lau.
The company’s healthcare division is expected to contribute at least 20 per cent to group revenue by 2025, from 10 per cent currently.