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Healthway Medical Corporation and OUE Lippo Healthcare to terminate sub-lease agreement at OUE Downtown 2 early

Felicia Tan
Felicia Tan • 2 min read
Healthway Medical Corporation and OUE Lippo Healthcare to terminate sub-lease agreement at OUE Downtown 2 early
The agreement, which was supposed to end in July 2023, will end on Dec 31 instead. Photo: Samuel Isaac Chua/The Edge Singapore
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Healthway Medical Corporation and OUE Lippo Healthcare Limited (OUELH) have mutually agreed to terminate the sub-lease agreement at 6 Shenton Way, OUE Downtown 2 before its expiry date on July 31, 2023.

The agreement will be terminated with effect on Dec 31 instead.

Notwithstanding the termination of the sub-lease agreement, the letter of offer (LOO) remains valid under the same terms and conditions.

Healthway Medical Corporation, on July 30, 2020, announced that it renewed its existing lease agreement with OUELH for the units situated at #10-09, #10-09A and #10-11 of OUE Downtown 2.

The premises would be leased to the company for a period of three years commencing on Aug 1, 2020, and expiring on July 31, 2023.

The transaction at the time was deemed as an interested person transaction (IPT) as OUE Commercial REIT, which OUE Downtown is a part of, is an associate of Healthway Medical Corporation’s controlling shareholders and director.

See also: Tuan Sing Holdings to divest majority of indirect investment in land in Fuzhou City in IPT

The manager of OUE Commercial REIT is a wholly-owned subsidiary of OUE Limited. OUE Limited is a subsidiary of a joint venture of Hongkong Chinese Limited, which is a 73.95% subsidiary of Lippo Limited. Lippo is 74.98%-owned by Lippo Capital Limited. The latter is a 60% subsidiary of Lippo Capital Holdings Company Limited. Lippo Capital Group Limited owns 100.00% of the issued share capital of Lippo Capital Holdings, and Lippo Capital Group is wholly owned by Dr Stephen Riady.

Lippo, through its 74.99% subsidiary, Lippo China Resources Limited, is deemed to be interested in approximately 40.91% of the entire issued shares of Healthway Medical Corporation. As such, each of LCR, Lippo, Lippo Capital, Lippo Capital Holdings, Lippo Capital Group and Dr Stephen Riady is deemed as a controlling shareholder of the company. Dr Stephen Riady is also a director of the company.

The termination of the sub-lease agreement is not expected to have any material financial effect on the company for the FY2022 ending Dec 31.

Shares in Healthway Medical Corporation closed flat at 3.7 cents on Dec 16.

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