First Real Estate Investment Trust (First REIT), Singapore’s first healthcare real estate investment trust is planning a rights issue to part finance the acquisition of two new healthcare properties in Indonesia.

The Mochtar Riady Comprehensive Cancer Centre (MRCCC) is being acquired from Wincatch Limited for $170.5 million, and Siloam Hospitals Lippo Cikarang (SHLC) is being acquired from the sponsor of First REIT, PT Lippo Karawaci Tbk, for $35.0 million.

The respective purchase prices of MRCCC and SHLC represent a discount of 19.7% and 13.8% respectively to the average of the properties‟ latest independent valuations. The acquisitions will increase First REIT‟s assets by 74.3% to $603.4 million.

To part finance the acquisitions, the manager plans to raise $172.8 million in gross proceeds through a fully-underwritten and renounceable rights issue of 345,664,382 new units in First REIT on the basis of five rights units for every four existing units, at $0.50 each. Credit Suisse and OCBC Bank are the Joint Lead Managers and Underwriters for First REIT‟s rights issue.

The issue price represents a discount of 47.4% to the closing price of $0.95 per unit on 4 November 2010.

The acquisition of MRCCC and related transaction costs will be funded in cash through a combination of the net proceeds from the rights Issue and partially through a new term loan facility of up to $50.0 million. The acquisition of SHLC and related transaction costs will be fully financed in cash from the proceeds raised from the rights issue. Upon completion of the Acquisitions, First REIT’s sponsor, PT Lippo Karawaci Tbk, will be the master tenant of both the properties.

PT Lippo Karawaci Tbk has given an irrevocable undertaking to take up its pro rata entitlement and also committed to the underwriters that it will subscribe to 50% of the difference between the total number of units offered in the rights issue and its 21.7% proportionate unitholding in First REIT.