KUALA LUMPUR (Bernama) -- IHH Healthcare Bhd (IHH) today announced a strategic collaboration with Parkway Life Real Estate Investment Trust (PLife REIT) in new master lease agreements for three hospitals in Singapore.

       IHH Healthcare said the new master lease agreements will be for a term of about 20.4 years from Aug 23, 2022 to Dec 31, 2042, with an option to renew for a further 10 years from Jan 1, 2043 to Dec 31, 2052.

       The three hospitals involved in the agreements are Mount Elizabeth Hospital Property, Gleneagles Hospital Property, and Parkway East Hospital Property.

       "With the agreements, IHH Healthcare’s ability to continue operating the three hospitals in the prime locations in Singapore is maintained, strengthening its long-term ability and commitment to serving patients in the republic.

       "Given the differentiated profiles and value proposition of Mount Elizabeth Hospital Property, Gleneagles Hospital Property and Parkway East Hospital Property, these properties capture different segments of the healthcare market and are significant contributors to the group’s profitability," the companies said in a joint statement filed with Bursa Malaysia today.

       Under the entities' renewal capital expenditure (capex) agreement as part of the collaboration, PLife REIT will inject a one-time renewal capex of up to S$150 million (S$1=RM3.097), excluding goods and services tax, to revamp the Singapore hospitals.

       "Upon completion of the renewal capex works, the Singapore Hospitals will be able to enhance the quality positioning and increase competitiveness of IHH Healthcare and PLife REIT, thereby driving further growth," they added.

       Meanwhile, the right of first refusal (ROFR) will be granted by Parkway Hospitals Singapore Pte Ltd, a wholly-owned subsidiary of Parkway Holdings Ltd, to HSBC Institutional Trust Services (Singapore) Ltd as a trustee over the hospital block of the Mount Elizabeth Novena Hospital (MENH) development in the event of the disposal of the MMENH property.

       Parkway Holdings Ltd is an indirect wholly-owned subsidiary of IHH Healthcare.