(PEHub) GIC Private Ltd, Singapore’s sovereign wealth fund, bought an undisclosed stake in Brazilian hospital chain Rede D’Or from investment bank BTG Pactual for R$1.6b (US$509.46m).

Two sources with knowledge of the transaction told Reuters earlier that GIC had also agreed to buy an equal number of shares from Brazilian businessman Jorge Moll and his family, who founded Rede D’Or, bringing the amount of the deal to 3.3 billion reais. The two operations would give GIC a stake of 16 percent in the hospital chain, said the sources, who asked for anonymity because the information is private.

Efforts to reach the media offices representing the Moll family and GIC were unsuccessful.

BTG Pactual did not say in the statement what would be its remaining stake in Rede D’Or after the sale.

The deal comes weeks after Moll and BTG Pactual sold an 8 percent stake in Rede D’Or to Carlyle Group LP for 1.75 billion reais.

The purchase of the Rede D’Or stake should help give GIC direct exposure to a sector that represents 10 percent of Brazil’s gross domestic product but is grappling with an ageing infrastructure, a dearth of qualified staff and rising costs.

Rede D’Or, which operates 27 hospitals in four Brazilian states, last year had revenue of 5.5 billion reais and earnings before interest, tax, depreciation and amortization of about 930 million reais.

Foreign interest in Brazilian hospitals skyrocketed following President Dilma Rousseff’s decision to end the ban on foreign ownership in the sector early in January. Industry leaders expect private equity involvement in Brazil’s hospital industry to help restore profitability in the sector.