KUALA LUMPUR, 14 JULY: Parkway Life Real Estate Investment Trust and IHH Healthcare Bhd have inked new long-term master leasing agreements for three hospitals in Singapore (PLife REIT). Mount Elizabeth Hospital, Gleneagles Hospital, and Parkway East Hospital are all part of the 20-year agreement, which has a 10-year option, according to a joint statement from the two corporations.
The purchase also includes a promise from PLife REIT to invest S$150 million in capital expenditures over three years to renovate the hospitals, according to the firms.
“With the new master lease agreements, IHH Healthcare’s capacity to continue operating the three hospitals in Singapore’s top locations is retained, enhancing its long-term capabilities and commitment to serving patients in Singapore,” according to the announcement.
IHH’s Singapore hospitals, according to IHH managing director and chief executive officer Dr Kelvin Loh, are the group’s best performers.
“Partnering with PLife REIT to extend the lease agreements for three of our hospitals in Singapore ensures IHH Healthcare’s business continuity and operational stability. “The S$150 million in upgrades to our facilities will further enhance the top-notch service offerings we’re known for, and we look forward to working closely with PLife REIT to ensure our Singapore operations remain positio
The rent for the first year of the renewal term agreements is in line with market rates, according to IHH, and there would be no major financial impact on the company’s profitability.
PLife REIT trustee HSBC Institutional Trust Services (Singapore) Ltd and IHH’s indirect wholly-owned unit Parkway Hospitals Singapore Pte Ltd signed the master lease agreements.
The agreements also contained a ten-year “right of first refusal” provided by IHH to PLife REIT for the Mount Elizabeth Novena Hospital hospital block.
IHH’s stock remained unchanged today at RM5.64, valuing the healthcare conglomerate at RM49.51 billion./n
