Radium Development Berhad has announced its strategic move into the healthcare sector with the venture to be carried out through A Famosa Specialist Hospital (Malacca) Sdn. Bhd., a wholly-owned subsidiary of its healthcare unit.
The developer in a filing said the business will include hospital operations, general medical services, development of building projects for operation and leasing, and the design, planning, and allocation of hospital facilities.
Radium said it is currently in negotiations with a potential business partner for collaboration in this new venture, with plans to formalise an agreement in the future.
On September 9, 2024, AFSH entered into a sale and purchase agreement to acquire a piece of leasehold land in Mukim Bukit Katil, Daerah Melaka Tengah, Negeri Melaka, with a total net land area of approximately 2.877 hectares (approximately 7.11 acres) for a purchase consideration of RM25,500,000.00. The sale and purchase agreement is pending completion.
The group said it plans to build a 140-bed hospital on the land, with construction targeted to begin in the second half of 2025, subject to regulatory approvals, and completion expected in the first half of 2028.
Radium intends to fund the preliminary costs and expenses of the healthcare business through internally generated funds and bank borrowings. The final funding structure will be determined later by the management, considering factors such as the group’s gearing level, interest costs, and internal cash flow requirements.
