HMI acquires 62.5% of StarMed Specialist Centre for up to $8.8m

SINGAPORE - Mainboard-listed private healthcare group Health Management International (HMI) has acquired a 62.5 per cent equity stake in StarMed @ Farrer Square (StarMed@FS) for $6.9 million.

HMI will also inject a $1.9 million shareholders loan into StarMed@FS, while assuming obligations of up to $31.2 million worth of loans, which is in proportion to its shareholdings, said the group on Monday (May 14).

StarMed@FS owns StarMed Specialist Centre, a new one-stop day-surgery and multi-disciplinary medical centre that offers quality clinical services at competitive private sector prices. StarMed spans about 16,000 square feet across four floors.

HMI said it is planned that services at StarMed will be "competitively priced", making quality private healthcare affordable and accessible for local and foreign patients. StarMed will initially focus on cardiovascular, digestive services and minimally invasive surgeries.

Aside from a day-surgery centre, StarMed will have additional facilities including a diagnostic and interventional radiology centre, an endoscopy centre, a multi-disciplinary medical centre, day care beds and private rooms.

Renovation at the StarMed site is on-going and operations are expected to officially commence in the second half of 2018.

HMI group chief executive officer Chin Wei Jia said: "Globally, there has been an increasing trend towards ambulatory care as facilities today can provide high-quality, cost-effective, convenient and comfortable experiences for patients and their families.

"Against this backdrop, we are excited about the potential of StarMed in light of rising demand for day surgeries and diagnostic imaging in Singapore."

The total cash consideration of $8.8 million will be funded from proceeds of Heliconia Capital Management's $11 million placement in November 2017.