Continue reading this on our app for a better experience

Open in App
Floating Button

First REIT divests Siloam Hospitals Surabaya for $40.9 mil

Samantha Chiew
Samantha Chiew • 2 min read
First REIT divests Siloam Hospitals Surabaya for $40.9 mil
Photo: First REIT
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

The manager of First REIT announced that it will be divesting Siloam Hospitals Surabaya for a consideration of IDR430.0 billion ($40.9 million) to PT Siloam International Hospitals and PT Megapratama Karya Bersama.

PT Megapratama Karya Bersama is a company in which Siloam International Hospitals directly holds a 99.99% interest and PT Lippo Karawaci (LPKR) indirectly holds a 0.01% interest.

This divestment comes on the back of the manager in December last year announcing its entry into two settlement agreements with PT Saputra Karya, an indirect wholly-owned subsidiary of LPKR, in connection with a proposed settlement in respect of the terminated development works adjacent to Siloam Hospitals Surabaya.

The proposed divestment provides First REIT with the opportunity to optimise its capital structure and is in alignment with the “First REIT 2.0 Growth Strategy” to reshape its portfolio for capital efficient growth.

Siloam Hospitals Surabaya was part of the REIT’s initial portfolio and was acquired at a purchase price of $16.8 million on Dec 11, 2006. This divestment hence represents a 143.2% capital gain.

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

See also: Singtel to sell mobile wallet Dash to Western Union Testing QA

The net proceeds from the 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.

Units in First REIT opened at 28 cents on May 19.

Photo: First REIT

Highlights

Re test Testing QA Spotlight
1000th issue

Re test Testing QA Spotlight

Get the latest news updates in your mailbox
Never miss out on important financial news and get daily updates today
×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.