UAE hospital operator Burjeel saves Dh343m after buying Bur Dubai land

Dubai: The Abu Dhabi based hospital operator Burjeel has bought the land on which its Medeor 24x7 Hospital operates near Burjuman Centre in Bur Dubai. The deal value is Dh170 million.

Buying the land outright will help Burjeel's 'long-term strategy' to reduce fixed lease liabilities - and 'reinforce its asset base in strategic locations'.

The Medeor 24x7 Hospital had been operational for more than 10 years. Burjeel earlier had a remaining fixed rental commitment of approximately Dh343 million over the next 15 years.

"This strategic transaction eliminates that significant liability and replaces it with asset ownership in a high-performing and strategically located facility," said a statement.

"By securing full control of the hospital, Burjeel Holdings ensures uninterrupted operations, safeguards established brand equity, and avoids the risks and costs associated with relocation."

The hospital’s existing infrastructure also 'supports' potential upgrades such as day surgeries or specialty clinics.

Buying the land now also makes perfect commercial sense for Burjeel. Land values in established areas of Dubai have been rising year-on-year, often in double-digit terms. The Medeor hospital sits in one of the city's high-density commercial and residential areas, and has been a go-to place for residents' needs in the 10 years and more that it has been open.