First Real Estate Investment Trust (First REIT), Singapore’s first listed healthcare vehicle, has agreed to sell a portfolio of hospitals in Indonesia to CVC-backed Siloam International Hospitals, and select non-core assets to another local buyer investor for a total of S$471.51m (€317m).
First REIT said following a strategic review of its business, it had decided to sell eight hospital assets to Siloam International Hospitals and or its subsidiaries for approximately S$389.2m, and three non-hospital assets for S$53.3m to PT Lippo Karawaci in the first tranche.
It had entered into a put option agreement for the remaining hospital assets in First REIT’s Indonesia portfolio in the second tranche which would unlock about S$294.8m.
Victor Tan, executive director and CEO officer of First REIT Management, the manager of First REIT, said: “The two-tranche divestment prioritises distribution stability and support distribution resilience while recycling capital from non-core and non-healthcare assets, and assets with rental arrears.
“More importantly, the proposed divestments are expected to optimise First REIT’s capital structure to position First REIT for growth focussing on developed markets, including Singapore, Japan and Australia.”
Christopher James Williams, chairman and non-independent non-executive director of First REIT Management, said: “The board is encouraged with the progress of the strategic review as the proposed divestments provide transaction certainty amidst an increasingly challenging macroeconomic environment in Indonesia.”
First REIT would continue to manage existing properties in Singapore and Japan, while also concurrently evaluating any opportunities for capital recycling on these properties, said the trust’s manager.
As at 31 December 2025, the trust had a portfolio valued at S$1.02bn. Its 31 properties include 14 properties in Indonesia comprising 11 hospitals, two integrated hospitals & malls and an integrated hospital & hotel; 3 nursing homes in Singapore; and 14 nursing homes in Japan.
An earlier version of this story failed to mention that First REIT was also selling select non-core assets to another local investor as part of the deal.
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