This announcement is dated 19 March 2015.

On behalf of the Board of Directors (“Board”) of KPJ Healthcare Berhad (“KPJ”), AmInvestment Bank Berhad (“AmInvestment Bank”), wishes to announce that Seremban Specialist Hospital Sdn Bhd, a wholly-owned subsidiary of KPJ (“SSHSB”), had on 18 March 2015 entered into a sale and purchase agreement with the AmanahRaya Trustees Berhad, being the trustee of Al-`Aqar Healthcare REIT (“Trustee” or “Purchaser”), to dispose a parcel of freehold land in Seremban, Negeri Sembilan (“SSH Land”) to Al-`Aqar for a total cash consideration of RM4.25 million (“SSH SPA”) upon the terms and conditions of the SSH SPA (“Proposed Disposal”).

As a condition to the Proposed Disposal, SSHSB will enter into a supplemental lease agreement with the Trustee and Damansara REIT Managers Sdn Berhad, being the manager of Al-`Aqar (“DRMSB” or “Manager”), for the lease of the SSH Land to SSHSB (“SSH Supplemental Lease Agreement”) upon the terms and conditions to be agreed between the aforesaid parties (“Proposed Leaseback”).  The SSH Supplemental Lease Agreement shall supplement a lease agreement dated 12 December 2012 entered into between SSHSB, the Trustee and DRMSB for the lease of the Existing Properties for the second (2^nd) lease term period (as defined herein) to SSHSB (“SSH Existing Lease Agreement”).

For further details on the Proposals, please refer to the attachment.