First REIT acquires 347-bed hospital in Indonesia for $39.16m

It operates under the Siloam Hospitals brand.

First REIT continues its expansion into Indonesia, with another hospital acquisition this time in the Sumatran city of Palembang.

According to a report by OSK-DMG, First REIT is acquiring the Siloam Sriwijaya hospital, which was completed in 2012. The hospital has a maximum capacity of 347 beds and a total floor area of about 15,336 sq m.

Siloam Sriwijaya operates under the Jakarta-listed Siloam Hospitals brand, the largest private health-care chain in Indonesia, and is part of the Palembang Square Extension, an integrated development that includes a mall.

OSK-DMG adds that the price is 10.57% below the higher of two independent valuations for the property. The higher valuation came in at $43.79 million. It will be financed by a combination of First REIT's debt facility and new units. The property will offer an initial gross rental yield of 9.95%, based on the expected annual base rent of about SGD3.9m.