First REIT - OCBC Research 2016-06-22: Still in discussions on joint acquisition of Yogyakarta Property

First REIT - OCBC Research 2016-06-22: Still in discussions on joint acquisition of Yogyakarta Property FIRST REAL ESTATE INV TRUST FIRST REIT AW9U.SI 

First REIT: Still in discussions on joint acquisition of Yogyakarta Property

  • First REIT (FREIT) recently provided a couple of updates to the market. 
  • First, it managed to obtain an extension of the Hak Guna Bangunan (HGB) title from the National Land Office of Indonesia for its Siloam Hospitals Kebon Jeruk for a period of 20 years to 10 Aug 2037. 
  • Secondly, FREIT also gave an update with regards to its proposed joint venture and joint acquisition with Lippo Malls Indonesia Retail Trust (LMIRT) for an integrated development comprising a hospital and a retail mall (Yogyakarta Property). 
  • Both parties are still in discussions with the vendor of the Yogyakarta Property to finalise the details of the joint acquisition. The vendor is wholly-owned by PT Lippo Karawaci, which is the sponsor of both FREIT and LMIRT. The process has taken longer than expected due to the unique structure of the acquisition, as this is the first time that FREIT and LMIRT are jointly acquiring an integrated development with both hospital and retail mall assets. 
  • We have not incorporated the Yogyakarta Property acquisition in our model. 
  • Maintain HOLD and S$1.36 fair value estimate on FREIT.




Wong Teck Ching Andy CFA OCBC Securities | http://www.ocbcresearch.com/ 2016-06-22
OCBC Securities SGX Stock Analyst Report HOLD Maintain HOLD 1.36 Same 1.36


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