First Real Estate Investment Trust announced on Wednesday that it has entered into a master sale and purchase agreement with PT Bisma Pratama Karya for the proposed acquisition of a hospital in South Sumatra for $39.16 million.
The acquisition of the hospital, Siloam Sriwijaya, will be undertaken through First Reit's indirect wholly-owned subsidiary, PT Sriwijaya Mega Abadi
Mainboard-listed First Reit said the acquisition will expand its portfolio to 16 properties and broaden its asset base by 3.54 per cent from $1.13 billion (as at Oct 31, 2014) to $1.17 billion.
The acquisition will be financed by a combination of a draw-down from First Reit's committed debt facility and the issuance of new units.
The hospital will be acquired conditional upon the delivery of a strata title to be issued by the local land office in Indonesia.
Siloam Sriwijaya currently operates under the Siloam Hospitals brand, which is the largest private health-care chain in Indonesia and is listed on the Jakarta Stock Exchange.
The seven-storey hospital building, completed in 2012, is at Jalan POM IX, Komplek Palembang Square, Palembang City, South Sumatra. It has a maximum capacity of 347 beds and a total floor area of about 15,336 square metres.
Siloam Sriwijaya is part of the Palembang Square Extension, which is an integrated development with 800 vehicle parking lots which comprises a hospital and shopping mall.