First REIT, reported in late November 2017 that it has extended a ‘build, operate, and transfer’ (BOT) agreement with regards to the land on which its properties, Siloam Hospitals Kupang & Lippo Plaza Kupang, is located.

The deal which extends First REIT’s BOT agreement to 30 years from 25 years previously, was reached with the Provincial Government of Nusa Tenggara Timur.

As such, the agreement which commenced in May 2011, will now expire in May 2041.

The extension, which provides the REIT with more better earning predictability for the next 23 years, is the first of five of factors that currently bode well for units of the Singapore-listed, but Indonesia-heavy healthcare REIT.

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