First REIT to acquire two hospitals in Indonesia

Deal is at S$190.4 million.

First REIT has entered into conditional sale and purchase agreements to acquire two new income-producing hospitals in Indonesia, for a combined purchase consideration of approximately S$190.4 million. 

Its proposed acquisition include Siloam Hospitals Bali, located at Jalan Sunset Road, No.818, Kuta, Badung, Bali 80361, Indonesia, for a purchase consideration of approximately S$97.3 million from a wholly-owned subsidiary of PT Lippo Karawaci Tbk. 

This will be financed entirely by a drawdown of committed debt facility.

It is also set to acquire Siloam Hospitals TB Simatupang, located at Jalan Letjend. TB Simatupang/ Jalan R. A. Kartini No.8, Cilandak, South Jakarta, Indonesia, for a purchase consideration of approximately S$93.1 million from an indirect wholly-owned subsidiary of the Sponsor. 

This will be financed by a combination of a drawdown of committed debt facility and issuance of new units to the Sponsor.

The final issue price of the Consideration Units will be determined based on the 10-day Volume-Weighted Average Price of the Units immediately preceding the date of completion of the acquisition of SHTS. 

Based on the average of two independent valuations, SHBL and SHTS will be acquired at an attractive discount of 13.3% and 12.5% respectively.

These acquisitions will further expand First REIT’s portfolio to 14 properties across three regions, namely Indonesia, Singapore and South Korea, as well as expand its total asset size from S$796.7 million as at 31 December 2012 to over S$1.0billion.