First REIT passes on acquisition of West Java property

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First REIT said Friday it has decided not to exercise its right of first refusal over PT Lippo Karawaci TBK’s plan to sell four plots of land located in Tangerang in Banten province, West Java including a public hospital building located on it, PT Siloam International Hospitals Tbk.

“The manager has considered the opportunity and has decided not to exercise the right of first refusal,” the REIT said in a filing to SGX. “The property consists of a public hospital building that does not meet First REIT’s prevailing investment strategy and criteria.”

“First REIT will continue to explore opportunities from its sponsors, OUE Limited and OUE Lippo Healthcare Limited, as well as strategic investors and third parties for the acquisition of assets that meet its investment strategy and criteria,” the REIT said.

The public hospital building, currently operated by Siloam Hospitals as Rumah Sakit Umum Siloam, has six storeys with a maximum capacity of 640 beds; it began operations in 2012, the filing said, adding the hospital focuses on serving BPJS Kesehatan (National Insurance Program) patients.