SINGAPORE - Healthway Medical Corporation Limited has signed a master lease agreement with Alkas Realty, a wholly owned subsidiary of OUE Limited, for units at OUE Downtown.

These two units would be leased to Healthway Medical for 36 months commencing on Aug 1, 2017 and expiring on July 31, 2020 and the term comprised a rent-free period of four months between Aug 1, 2017 to Nov 30, 2017.

This constitutes an interested party transaction as Lippo is deemed to be an indirect 40.82 per cent stake in Healthway Medical.

Under the master lease agreement, the premises that span a floor area of 687 sq m are rented at S$85.04 per sq m (psm) (including service charge based on current rate).

Taking into consideration the rent-free period, the effective rental rate of the premises would be S$75.59 psm for the term. A refundable security deposit amounting to three months of the rental is payable by Healthway upon the entry into the master lease agreement.

Healthway said that because the effective rental rate is lower than the market rate as indicated in the valuation report, inking the master lease agreement will result in cost-savings for the group.