First REIT has received unitholders approval at an extraordinary general meeting (EGM) held on 29 December to partake in an asset swap transaction in Surabaya.

The transaction will include a land plot divestment and the acquisition of a new mixed development property in the city.

The land plot to be divested is located in Gubeng District, Surabaya and owned by PT Tata Prima Indah, a wholly-owned subsidiary of First REIT. It will be sold for SGD8.2 million to PT Saputra Karya, a wholly-owned subsidiary of First REIT’s sponsor PT Lippo Kawaraci.

Upon divestment, the Singapore-listed healthcare REIT has proposed to acquire the mixed development property that will be erected in part on the plot of land that is being divested. The new mixed development property is being proposed for acquisition by First REIT for SGD90 million.

The mixed development property will include a private school, an ancillary mall and the new Siloam Hospitals Surabaya. PT Tata Prima Indah and PT Saputra Karya had in October 2015 entered into an agreement to develop the property.

Resolutions to approve plans to divest, develop and subsequently acquire the mixed property development was approved during the EGM with 98.26% of unitholders in favour of the proposals.

Units of First REIT ended flat at the end of its trading day on the Singapore Exchange on 29 December to finish at SGD1.20.