Private healthcare provider Raffles Medical Group has agreed to buy a site adjacent to Raffles Hospital in North Bridge Road for $105.2 million to expand the hospital.

The land, to be purchased from the Singapore Land Authority, has an area of 21,292 sq ft.

With a plot ratio of 5.6, it would yield a potential gross floor area of some 119,235 sq ft, the group said on Wednesday.

Separately, Raffles Medical Group has already obtained permission from the Urban Redevelopment Authority to raise the plot ratio on its existing land for Raffles Hospital, which can yield an additional 102,634 sq ft in floor area.

Both sites are on 99-year leases.

Dr Loo Choon Yong, executive chairman of Raffles Medical Group said in a statement: "The proposed extension will offer a runway for the hospital's expansion and growth for the next 10 years, and contribute to Singapore's vibrancy as a medical hub by offering integrated facilities and services for healthcare services, life sciences, research and teaching."

The company added that the additional space will be used to expand its range of sub-specialty centres.

For example, it plans to develop centres of excellence in the treatment of cancer, heart diseases, infertility and spine and joint issues.

Some space will also be used to expand the company's healthcare education and clinical research activities, enabling it to expand its training of doctors, nurses and other healthcare professionals.

The total development cost of the project, including the purchase price of the site is estimated to be $310 million.

Raffles Medical Group will pay for the project in cash through internal resources and bank borrowings. Construction is expected to take two years.