KPJ Healthcare Bhd is selling two plots of unoccupied freehold development land with a total area of 10.94 hectares for AU$6.5 million in Queensland, Australia.
Its subsidiary Jeta Gardens (QLD) Pty Ltd and JLand Australia Pty Ltd entered into a commercial land and buildings (CCLB) contract for the intended sale of the sites as mentioned above on Sept 12.
KPJ said in a filing with the stock exchange yesterday that the parties reached a "willing buyer-willing seller" agreement on the selling price.
It said that Jeta Gardens had commissioned an independent professional valuation on the said lands, which were valued at AU$6.5 million.
Kumpulan Perubatan (Johor) Sdn Bhd, a fully-owned subsidiary of KPJ, owns 57 per cent of Jeta Gardens, which runs elderly care facilities and a retirement village in Bethania, Queensland.
Johor Land Berhad, a unit of Johor Corporation, is the sole owner of JLand Australia.
The filing showed that the directors of KPJ, Khairuddin Jaflus, Rozaini Mohd Sani, and Shamsul Anuar Abd Majid, are also directors of Johor Land.
According to KPJ's statement with the stock exchange, the proposed disposal will allow the group to dispose of its non-core assets as part of carrying out its transformation plan and cost optimisation.
KPJ's president and managing director, Datuk Mohd Shukrie Mohd Salleh, announced in July this year that the group would be selling its operations in Australia and Indonesia during the next 12 to 24 months as part of its rationalisation strategy to promote growth post-Covid-19.
The private healthcare group operates six businesses abroad, including two hospitals in Indonesia, the aged care facilities and the retirement village, and the loss-making Jeta Gardens.
Additionally, KPJ has operations in Thailand and Bangladesh.
Regarding the sale of Jeta Gardens, it was reported in 2018 that KPJ was in discussions with an Australian entity operating in a related industry.
According to Mohd Shukrie, the KPJ board had authorised measures to streamline its overseas activity, which included selling Jeta Gardens and two of its hospitals in Indonesia.