First REIT property in Singapore, Pacific Healthcare Nursing Home.First REIT property in Singapore, Pacific Healthcare Nursing Home.

Singapore-listed healthcare REIT, First REIT (SGX:AW9U), announced on 14 December that it will be holding an EGM to obtain unitholders’ approval with regards to a land plot divestment and the acquisition of a new mixed development property in Surabaya.

The land plot 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.

First REIT is also seeking unitholders’ approval to acquire a mixed development property that will be erected in part on the plot of land that is being proposed for divestment.

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.

The new mixed development property is being proposed for acquisition by First REIT for SGD90 million.

The EGM is currently scheduled to be held on 29 December 2015 at 9.30 a.m. at Taurus Room, Marina Mandarin Singapore. Units of First REIT are currently trading on the Singapore Exchange at SGD1.17.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.