IHH Healthcare has partnered with Pelaburan Hartanah Bhd for the development of a new medical block adjacent to the current Gleneagles Hospital Kuala Lumpur complex as informed the new facility will be leased from PHB for an initial period of 20 years. MIDF views the expansion plan positively as the new purpose-built medical block for Gleneagles Hospital will take up about 470,000 sqft of floor area equipped with over 260 beds making it the largest private hospital in the country.
This project is expected to be completed by CY27 and is subject to regulatory approvals which is also in line with IHH’s drive to add additional beds to its hospitals locally and internationally in CY24.
The new block will be equipped with state-of-the-art facilities aimed at providing highly specialised care in emerging sub-specialties such as micro and hand, foot and ankle, spine surgeries. It is also specifically designed with a high allocation of single beds to meet rising demand for individualised patient care, and is expected to incorporate green building features.
Set to be largest private hospital in Malaysia. Post-expansion, Gleneagles Hospital Kuala Lumpur will enter a new phase of growth and will be one of the largest private hospitals in Malaysia with over 700 beds. Gleneagles caters for growing demand from locals and medical tourists. For PHB, this expansion is in line with its aim to achieve RM25b asset portfolio by CY30.
The house believes that the collaboration between IHH and PHB since 2011 for its Gleneagles Hospital proved to be a solid
and strategic partnership. Considering IHH’s strong presence in the private healthcare sector as well as the call for
more healthcare services in line with the growing aging population and higher demand for basic treatments and
surgeries from local patients and medical tourists, MIDF opines that this expansion will benefit the group in the long run. The house likes IHH for its strong balance sheet and maintains its BUY call, with a target price of RM7.08.
