Ibraco sells land to HMI Medical for private hospital in Sarawak

Ibraco Bhd has agreed to sell 4.2 acres of land within the NorthBank township in Kuching, Sarawak, to NorthBank Specialist Hospital Sdn Bhd (NHSB) for RM35.4 million (€7.4 million). The transaction will fund the development of a private specialist hospital.

The land disposal is expected to generate an estimated gain of RM22 million (€4.6 million) for Ibraco, whose original investment in the site in 2011 was RM1.422 million (€0.3 million). The sale price reflects a willing-buyer, willing-seller valuation, aligned with an independent appraisal of RM34 million (€7.1 million) conducted in November 2024.

NHSB, a subsidiary of Health Management International Pte Ltd (HMI Medical), will operate the private hospital, marking HMI’s entry into Sarawak. HMI Medical is a regional private healthcare group with operations spanning tertiary hospitals, primary care, telemedicine, diagnostics, ambulatory services, corporate health, and training across Southeast Asia.

Ibraco said the land sale enables HMI Medical to expand its private healthcare network, improving accessibility to quality healthcare services for residents in Sarawak. The hospital is expected to draw residents and professionals, create jobs, boost demand for medical and commercial services, and strengthen investor confidence and the township’s appeal.

Proceeds from the disposal will fund Ibraco’s NorthBank Business Exchange project, a RM348 million (€72.8 million) development comprising a leisure mall, office tower, and service apartments, scheduled for completion in December 2028. RM22 million (€4.6 million) of the land sale proceeds will partially finance this first phase, with RM5.744 million (€1.2 million) allocated for working capital and RM7.656 million (€1.6 million) reserved for disposal-related expenses.

Explore how this private hospital project is reshaping healthcare delivery and investment in Sarawak in the full story.