Standard Bank supports transformation of South African private hospital sector

Standard Bank is proud to have supported Busamed in its recent acquisition of the operations of Gateway and Hillcrest private hospitals from Ross Healthcare.

“Our support for Busamed is a great example of partnering with emerging businesses that are truly competitive in their sectors,” says Kenny Fihla, Chief Executive, Corporate and Investment Banking for Standard Bank.

In a R1.7bn transaction, Busamed acquired the operations of the Gateway and Hillcrest private hospitals, whilst Growthpoint acquired the properties of the two hospitals which are leased to Busamed.

This transaction has seen Busamed, a pre-eminent black owned and operated national specialist private hospital network, owning three of the top ten private hospitals in South Africa.

“Standard Bank is committed to driving growth in South Africa, and we are pleased to have worked alongside Busamed in supporting the emergence of a dynamic healthcare hospital group,” says Mr Fihla.

According to Dr. Diliza Mji, the Chairman and Founder of Busamed; “Busamed’s vision - prioritising care above profit - recognises that attracting and retaining leading medical professionals highly specialised in key or rare medical disciplines requires both assembling the technology, building the systems and acquiring the properties that allow medical professionals to innovate and flourish.”

Busamed aims to be an internationally renowned, innovative and caring private South African healthcare group.  This will be achieved by investing in high quality national private hospitals.

From an empowerment perspective, the deal successfully transferred the operations of two of South Africa’s top tier private medical care facilities to an independent competitor, in a move set to transform the South African private hospital landscape.

The participation of Growthpoint in the transaction - as largest capital provider - not only supports Growthpoint’s longer term ambitions to create a South African commercial hospital REIT (real estate investment trust), but, also successfully links emerging black business with established business in a mutually beneficial and interdependent relationship.

“Driving inclusive growth and opportunity through the provision of innovative financial solutions is a priority for Standard Bank,” says Mr Fihla.