JAKARTA – PT Siloam International Hospitals Tbk (SILO) has submitted a non-binding Letter of Intent (LOI) to First Real Investment Trust (First REIT) regarding a potential acquisition of First REIT's hospital portfolio in Indonesia.

"The LOI was received and confirmed by the Manager on January 13, 2025," stated Ratih Hadiwinoto, Corporate Secretary of SILO, in a disclosure today (14/1).

SILO is currently the existing tenant and operator of all First REIT hospitals in Indonesia. According to its official website, First REIT's healthcare portfolio in Indonesia consists of 11 hospitals, two mall-integrated hospitals, and two hotel-integrated hospitals.

On the other hand, First REIT has acknowledged and is currently reviewing the LOI and determining its strategic options, assisted by Citigroup Global Markets Singapore (Citi), as reported by Singapore Business Review.

While no definitive decision or outcome has been reached regarding the LOI, the plan could potentially enhance SILO's performance through a reduction in asset leasing costs. “This aligns with the Company’s business expansion plans and strategy,” Hadiwinoto added.

According to IDNFinancials research, First REIT is a Singapore-based healthcare-focused investment company, managing a total of 30 assets across Japan, Indonesia, and Singapore. (ZH)