First Reit studies options after road subsistence causes 'serious impact'

THE manager of First Reit on Friday updated that the road subsistence that took place in 2018 along Gubeng Highway, Surabaya, close to Siloam Hospitals Surabaya, has had "a serious impact" on the development works on the adjacent land that the real estate investment trust (Reit) had sold to Lippo Karawaci to build a new hospital.

The works are no longer progressing on the proposed timetable, and are on hold pending the outcome of investigations by the Indonesian authorities.

The manager has engaged consultants to carry out land-use studies and other surveys on the affected plots of land to assist in the evaluation of its options. These studies and surveys are currently in progress, it said.