First REIT To Divest Siloam Hospitals Surabaya For S$40.9 Million (US$29.47 Million)
May 19, 2022 – First Real Estate Investment Trust announced that Primerich Investments Pte. Ltd. and Surabaya Hospitals Investment Pte. Ltd., each of which is a direct wholly-owned subsidiary of Perpetual (Asia) Limited, as trustee of First REIT have entered into a conditional sale and purchase agreement with PT Siloam International Hospitals Tbk and PT Megapratama Karya Bersama.
“The Proposed Divestment is a strategic and timely opportunity to realise capital appreciation of SHS. Moreover, it aligns with First REIT 2.0 Growth Strategy and the Trust will be well-placed to ride on its growth trajectory,” said Mr Victor Tan, Executive Director and Chief Executive Officer of the Manager.
Following the Proposed Divestment, the weighted average age of property computed on a GFA basis for the portfolio of First REIT will improve from 16.2 years to 15.7 years as at 31 December 2021 and on a pro forma basis, including the Japan Nursing Homes.
The net proceeds from the Proposed Divestment may be used to repay debt, finance any capital expenditure and asset enhancement works and/or general corporate and working requirements, and to distribute as capital gains.
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