First REIT

First REIT: Acquired two new hospitals in Indonesia- Siloam Hospitals Bali in Bali (SHBL) and Siloam Hospitals TB Simatupang in South Jakarta (SHTS), for a total consideration of $190.4m. With expected annual initial base rents of approximately $9.7m for SHBL and $9.3m for SHTS, both properties will offer an initial net property yield in excess of 9%. The acquisition will boost NPI by $18.8m, DPU to rise by 5.5% to 6.94¢, and increase NAV by 8.4% to $0.90. All prior figures are from Group's last reported earnings as at 31 Dec 2012. Seller of both hospitals is a wholly-owned subsidiary of PT Lippo Karawaci. Financing will be done by a combination of a drawdown of committed debt facility, and issuance of new units to Lippo Karawaci. Based on the average of two independent valuations, SHBL and SHTS will be acquired at an attractive discount of 13.3% and 12.5% respectively. These acquisitions will further expand First REIT’s portfolio to 14 properties across three regions, namely Indonesia, Singapore and South Korea, as well as expand its total asset size to over $1.0b.