First Reit buys another hospital in West Java

FIRST Real Estate Investment Trust (First Reit) has agreed to buy Siloam Hospitals Purwakarta in West Java, Indonesia, for $31 million in a move that will boost its asset base to $1.09 billion and position the Singapore-listed healthcare Reit for future acquisitions.

The acquisition, which amounts to $31.88 million if professional and other expenses are included, will be made by First Reit's subsidiary, Finura Investments Pte Ltd, from PT Purimas Elok Asri (PT PEA), which is an indirect subsidiary of PT Metropolis Propertindo Utama (PT MPU).

At $31 million, the purchase price represents a 17.3 per cent discount to the higher of the two independent valuations. Three valuations were obtained: $31 million, $37.47 million and $37.50 million.