Siloam International Hospitals has made an offer to First REIT to buy its portfolio of hospital assets in Indonesia.
First Reit, Singapore’s first listed pure healthcare hospital company, owns 15 properties including 11 hospitals, two integrated hospitals and malls, one integrated hospital & hotel, and one hotel & country club in Indonesia.
Siloam, majority-owned by CVC Capital Partners, is the existing tenant and operator of these hospital assets. It is the largest private hospital operator in Indonesia.
The board of First Reit said it had decided to undertake a strategic review to assess the letter of intent from Siloam and to “explore all strategic options” for First Reit.
“Through the strategic review, the board is committed to Reit, which may include, but not limited to, exploration of joint ventures, strategic partnerships, asset acquisitions and/or asset divestments, with a view to delivering sustainable long-term value for First Reit’s unitholders.”
The board said there was no certainty or assurance that any transaction would materialise from the strategic review or the offer, or that a definitive or binding agreement would be reached relating to any of the assets of First Reit.
Any proposed transaction will be subject to, among other things, commercial negotiations, the outcome of the strategic review and approvals in compliance with applicable regulatory requirements, it said.
First Reit has a total portfolio of 33 assets, including three nursing homes in Singapore; and 14 nursing homes in Japan, valued at S$1.14bn (€812m) as of 31 December 2023.
Last September, CVC paid more than US$1bn (€975m) to purchase the interest in Siloam International Hospitals from Indonesian conglomerate Lippo Karawaci, which continues to hold a minority stake in the business.
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