First Reit still 'anticipating' rental restructuring proposal from Lippo Kawaraci

THE manager of First Reit said on Monday that it expects to receive a rental restructuring proposal from its tenant and former parent company Lippo Kawaraci (LPKR).

It said in a statement to the Singapore Exchange: "The manager is anticipating to receive a proposal regarding the rental restructuring from LPKR. For the avoidance of doubt, no agreement has been reached in respect of any rental restructuring."

On June 1, LPKR had issued a statement about its intention to initiate rental restructuring discussions with First Reit.

Later, on July 20, First Reit announced that its tenants, including LPKR, would be granted rental relief of two months for May and June 2020.

First Reit said at the time that a further relief similar to that announced for the first half of the year may be considered and announced during the second half of the year.

Separately, First Reit said on Monday that it remains in active discussions with all stakeholders to reach a settlement on the road subsidence that happened along Surabaya's Gubeng Highway, near Siloam Hospitals Surabaya, in December 2018.

First Reit shares fell four Singapore cents or 7.48 per cent to S$0.495 on Monday.