Sarang Hospital (First REIT)

First REIT is divesting its sole asset in South Korea, Sarang Hospital, for USD4.52 million.

The asset is a six-storey hospital with one basement level, and it is one of the largest rehabilitation treatment and nursing healthcare facilities in Yeosu City.

The hospital was recently valued by Colliers International (Hong Kong) Limited at USD4.6 million.

As such, the divestment consideration is about 1.7% lower than the valuation.

First REIT has described the divestment as part of its “proactive asset management strategy to optimise First REIT’s portfolio and optimise returns for unitholders”.

Net proceeds from the divestment would be approximately USD4.3 million and may be used to fund potential acquisition opportunities, repay existing indebtedness, or be deployed for working purposes, said the REIT.

First REIT’s full disclosure on the divestment can be viewed here.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.