Wednesday, March 27, 2013

RMG fails again in bid to convert space

The Straits Times  |  Mar 23, 2013

Raffles Medical Group's plans to turn part of a commercial building into medical suites have been turned down for the second time.

The Singapore-listed health- care group submitted two applications - one in October last year and another this February - seeking to convert the commercial property on 30, Bideford Road into a medical centre.

In an announcement to the Singapore Exchange yesterday, RMG said its resubmission had not been successful, and that it would "explore various options with respect to the property".

The company added that it would "continue to believe in the strategy of expanding its specialist medical practice to the Orchard Road vicinity, to meet the growing demands of local and foreign patients for high-quality medical and specialist services".

The company paid $92 million for the seven-storey freehold podium block - part of Thong Sia Building - in 2011.

The property has a freehold strata floor area of 42,668 sq ft, and the podium area is part of a 26-storey commercial and residential building.

The group intended to convert the space into a specialist medical centre with services such as 24-hour emergency care, dental care, health screening and a laboratory.

This is the latest setback for RMG, which lost out on a bid to run a private hospital in Hong Kong earlier this month.

The group lost the bid for the 27,500 sq m site in Wong Chuk Hang to GHK Hospital, a 60 per cent-owned indirect unit of IHH Healthcare.

RMG shares fell 6 cents to close at $3.37 yesterday.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)

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