Hatten Land PH0 and Quantum Healthcare V8Y have signed a strategic partnership agreement on March 22 where the latter will establish a specialist outpatient care centre, Quantum Specialist Centre at Hatten Land’s Imperio Mall in Melaka.
Under the agreement, Quantum Healthcare will take up at least 180,000 sq ft of space over three floors. The mall itself has a total net lettable area (NLA) of 350,000 sq ft over eight floors. The space will be used for the company’s medical specialists, aesthetic doctors, food and beverage (F&B) brands as well as space for offices.
The centre is expected to open in phases from the second half of 2023. The agreement marks Quantum Healthcare’s first overseas expansion and maiden foray into the medical and wellness business. The company’s dentistry business in Singapore currently accounts for 100% of its revenue.
The total tenure is nine years with an initial term of three years with an option to renew for a further period of two terms of three years per term. Quantum Healthcare will pay a monthly base rent and service charge for the initial term of three years beginning from the date of the agreement in cash.
The agreement is valid from its signing until the signing of tenancy agreement between Quantum Healthcare and Hatten Land. The tenancy agreement will be signed within 30 days of this agreement.
Quantum Healthcare is also in discussions with various parties on the sub-lease arrangements.
According to Quantum Healthcare’s CEO Thomas Tan, Melaka is well-suited to be a regional specialist outpatient care centre after it has made a name for itself as a healthcare hub and now that inter-state and cross-border travel has resumed.
“Melaka is one of several healthcare hubs in Malaysia and the federal government is stepping up efforts to further promote the country as one of the leading medical tourism markets in Asia. Besides Malaysians, we want Quantum Specialist Centre to also target Singaporeans and Indonesians. By our estimates, this centre can potentially cater to a catchment area of at least 24 million people – from Singapore, parts of Malaysia and Medan, the capital of North Sumatra in Indonesia,” he says.
“Medical tourism is an important economic driver and supported by its strong tourism base, Melaka is shaping up to become a key medical tourism hub, targeting the mass market segment with comprehensive and affordable medical services by skilled practitioners,” says Dato’ Colin Tan, executive chairman and managing director of Hatten Land.
“Building a brand-new medical hospital requires significant investment and time, and with the continued push towards telemedicine and outpatient procedures, retail malls are an increasingly attractive locations for medical and healthcare services, offering convenience for patients and service providers. Aligned with this trend, Imperio Mall has been repositioned as a medical mall and we aim to work closely with Quantum Healthcare to add compelling value and choice for customers in their healthcare and wellness journey,” he adds.
The collaboration is expected to contribute positively to Hatten Land’s future financial performance while Quantum Healthcare has yet to determine the full financial impact of this collaboration to its net earnings per share (EPS) or the net tangible asset (NTA) per share for the FY2023 ending Dec 31.
Shares in Hatten Land and Quantum Healthcare closed at 1.6 cents and 0.5 cents respectively on March 21.
