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First Reit manager says Surabaya hospital not affected by sinkhole

BOWSPRIT Capital, the manager of First Reit, late on Friday said that the operations of its Siloam Hospitals Surabaya property in Surabaya were not affected by the road subsidence that took place on Dec 18.

Instead, it pointed out that the Reit had sold a portion of the land next to Siloam Hospitals Surabaya to a subsidiary of its sponsor, Lippo Karawaci, for it to develop a new hospital. 

As for Siloam Hospitals Surabaya, it said: "The hospital operator has assured that all patients in their care remain in safe condition and the hospital's operations are continuing normally.

"The manager understands that repairs and investigations in relation to the road subsidence are currently ongoing, the manager is monitoring the situation closely and will provide an update as and when there are any material developments."

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The sinkhole reportedly occurred along Gubeng Highway, Surabaya, which is in close proximity to Siloam Hospitals Surabaya.

Media reports quoted officials as saying that it had halted a major construction project at Siloam Hospital, and quoted Surabaya deputy mayor Wisnu Sakti Buana as alleging that a failure to build adequate foundations for a basement car park had caused the pit to emerge. 

A National Disaster Mitigation Agency spokesperson was also reported as saying there was no connection between the sinkhole and two nearby earthquake faults.

Units of First Reit last closed at S$0.955 on Friday.