First Reit agrees to Surabaya asset swap with Lippo

Singapore

HOSPITAL owner First Reit has inked an asset-swap deal to sell two of its oldest properties in Indonesia back to its sponsor Lippo Karawaci and then acquire a new hospital that the sponsor plans to build over the next few years.

First Reit will sell an empty plot of land in Surabaya for S$8.2 million and an existing hospital building next to the plot for at least S$27.5 million to Lippo Karawaci, a property developer that is part of Indonesian conglomerate Lippo Group.

Lippo Karawaci intends to use the empty plot for part of an upcoming mixed development in Surabaya that will include a new hospital, mall, hotel, apartments and private school, First Reit said in a press release on Wednesday. It added that it has agreed to buy this new hospita…