First Real Estate Investment Trust (First REIT) has agreed to sell a portfolio of hospitals in Indonesia to CVC-backed Siloam International Hospitals for S$471.51m (€317m).
Singapore-listed First REIT said following a strategic review of its business, it had decided to sell six hospitals in the first tranche and entered into a put option agreement for two more hospitals in the second tranche. It said the price represented a 2.1% premium to valuation.
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.”
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