<article>Singapore listed <a style="color: #0000ff; text-decoration: underline;" href="http://www.first-reit.com/" target="_blank">First Real Estate Investment Trust</a> (First Reit), said it had reached an agreement with PT Bisma Pratama Karya for acquiring a hospital in South Sumatra for S$39.16 million.</article>

Singapore listed <a style="color: #0000ff; text-decoration: underline;" href="http://www.first-reit.com/" target="_blank">First Real Estate Investment Trust</a> (First Reit), said it had reached an agreement with PT Bisma Pratama Karya for acquiring a hospital in South Sumatra for S$39.16 million.
This acquisition will expand First REIT’s portfolio to 16 properties and broaden its asset base by 3.54 per cent from S$1.13 billion (as on 31 October 2014) to S$1.17 billion.
“The acquisition will be financed by a combination of a drawdown from First REIT’s committed debt facility and the issuance of new Consideration Units. Approximately S$33.16 million of the purchase consideration will be paid in cash and the remaining S$ six million will be satisfied by the issuance of the Consideration Units,” the company said in a statement.
First REIT’s wholly-owned, but indirect subsidiary, PT Sriwijaya Mega Abadi, will undertake the acquisition.
With an expected annual initial base rent of approximately S$3.9 million, the property will offer an attractive initial gross rental yield of 9.95%. The pro forma historical distribution per Unit for the nine months ended 30 September 2014 will rise by 2.33 to 6.15 cents and pro forma historical net asset value per Unit as at 30 September 2014 will also increase by 5.75 per cent to S$102.57, the company added.
First REIT is sponsored by PT Lippo Karawaci Tbk, Indonesia&#8217;s largest broad-based listed property company and it operates Siloam Hospitals Group. Managed by Bowsprit Capital Corporation Limited, the Trust has built a diversified asset portfolio of 15 properties comprising 11 located in Indonesia, three in Singapore and one in South Korea.

First Reit to acquire hospital in South Sumatra

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First Reit to acquire hospital in South Sumatra

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