First REIT recommends voting for Japan nursing homes acquisition

They also endorsed the settlement of terminated development works.

The First Real Estate Investment Trust (REIT) independent directors and Audit and Risk Committee have recommended the voting of its unitholders in favour of the proposed acquisition of nursing homes in Japan and the settlement of terminated development works.

In a disclosure, First REIT Management Limited, manager of First REIT said an extraordinary general meeting will be held on 28 January at 11 a.m. for the approval of the two transactions.

Three resolutions have to be approved for the proposed acquisition of 12 nursing homes located in Japan from OUE Lippo Healthcare Limited for S$163.2m and the OUELH Japan Medical Assets Pte. Ltd for S$0.3m. 

The unitholders will also vote for the proposed settlement of the terminated development works adjacent to Siloam Hospitals Surabaya for S$30.6m.

The decision for the voting came following the opinion of the Independent Financial Adviser Stirling Coleman Capital Limited the proposed acquisition and settlement were based on normal commercial terms; and the proposed consideration units for partial consideration of the acquisition proposal were fair and reasonable.

“We have presented Unitholders with what we believe is a compelling choice to take us forward decisively on our 2.0 Growth Strategy. Our hope is to receive the same strong mandate as we did in early 2021 that had allowed us to stabilise First REIT and set firm foundations for our pivot now to growing the Trust,” he said.

“Their support will allow us to focus on delivering growth to all stakeholders and create long-term, sustainable growth” he added.