First Reit

First Reit: to acquire two new properties in Indonesia, comprising an integrated hospital and hotel in Manado, and another hospital in Makassar in Sulawesi. They will be purchased from sponsor PT Lippo Karawaci for an aggregate consideration of $142.9m. The acq of Siloam Hospitals Manado & Hotel Aryaduta Manado for $83.6m will be funded by a combination of debt and proceeds from a proposed private placement exercise to be carried out by the Reit mgr. The acq of Siloam Hospitals Makassar for $59.3m will be financed entirely by a drawdown of committed debt. Two independent valuations by units in association with Knight Frank and CBRE value the properties at a discount of 10.8% and 9.8% respectively. The move will boost First Reit’s portfolio to span 12 properties across 3 regions, with a total asset size worth $782.2m. Mgt targets an AUM of $1b in the short to medium term. It will also boost its hospital bed count by 58% to 1748, and double its no. of guest rooms to 397. The acquisitions are expected to be DPU and NAV accretive. The stock is +1.5% at $1.045. Further details on the acq as follows.