First REIT completes acquisition of two Jakarta hospitals

First REIT completes acquisition of two Jakarta hospitals:

• Press Release
• Announcement

Key Points

• First Reit has completed the acquisition of two new healthcare properties in Indonesia – Mochtar Riady Comprehensive Cancer Centre (“MRCCC”) on 30 December 2010 and Siloam Hospitals Lippo Cikarang (“SHLC”) on 31 December 2010 (collectively, the “Acquisitions”).
• With the completion of the Acquisitions, First REIT’s portfolio has been enlarged and comprises 10 assets located in Indonesia and Singapore, valued in aggregate at approximately S$612.8 million as at 31 December 2010.
• Aims to achieve a portfolio size of S$1 billion in the next two to three years.
• First REIT‟s sponsor, Lippo Karawaci, Indonesia's largest listed property company by total assets, revenue and net profit, will be the master tenant of both the properties after completion.
• The conditional master lease agreements entered into with Lippo Karawaci in relation to MRCCC and SHLC on 8 November 2010 are for a 15 year lease term, with an option to renew for a further term of 15 years, subject to the renewal of the Properties‟ HGB titles.
• On 13 December 2010, the National Land Office of Indonesia extended MRCCC‟s HGB title (which was scheduled to expire on 27 August 2015) for a period of 20 years.
• Based on projection year 2011, the gearing level will stand at about 17%, which is significantly lower than the regulatory limit of 35%, allowing sufficient headroom for future accretive acquisitions.
• Based on projection year 2011, our gearing level will stand at about 17%, which is significantly lower than the regulatory limit of 35%, giving us sufficient headroom for future accretive acquisitions.

Related Posts

• First Reit rights issue - Use of proceeds for MRCCC acquisition
• Issue and listing of new units in first reit for the rights issue
• First Reit - results of the rights issue
• Extension of HGB title for Mochtar Riady Comprehensive Cancer Centre 
• First Reit - Lodgement and despatch of offer information statement - 6 DEC 2010
• First Reit - Notice of Rights Issue Books Closure Date
• The Expanded First Reit Post Rights Issue and Acquisitions
• First Reit - Follow up details of the proposed acquisition and rights issue - 10 NOV 2010 
• First Reit - proposed acquisitions and rights issue - 9 NOV 2010