By Amanda Lee

Units of Singapore-based First Real Estate Investment Trust rose after receiving a nonbinding proposal from global buyout firm CVC Capital Partners for its hospital assets in Indonesia.

The healthcare trust's units climbed as much as 3.8% to 27 Singapore cents, equivalent to 20 U.S. cents, on Tuesday morning, pushing the REIT into positive territory for the year.

Meanwhile, shares of Jakarta-listed Siloam International Hospitals fell 1.0% to 3,070.00 Indonesian rupiah, equivalent to 19 U.S. cents.

First REIT announced late Monday that it received a letter of intent from Siloam, an Indonesian private healthcare provider and majority-owned by CVC, to acquire the trust's Indonesia hospital assets.

The REIT's Indonesia portfolio includes 15 properties, comprised of 11 hospitals, two integrated hospital-and-mall properties, one integrated hospital-and-hotel property and one hotel-and-country club-property, all operated by Siloam.

First REIT said that it would review the letter of intent and explore all strategic options.

Darren Chan, a senior research analyst at Phillip Securities Research, noted that the assets would likely only be sold at or above their valuations, potentially benefiting unit holders. He also said the deal could help Siloam reduce rental expenses.

Maybank Securities analyst Krishna Guha attributed the gains on Tuesday to investor expectations of unlocking value. However, the analyst cautioned that the announcement's impact remains unclear, as First REIT has not disclosed details on the potential deal amount or timeline.

First REIT focuses on investing in healthcare assets and owns more than 30 properties across Asia, including in Japan, Indonesia and Singapore.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

January 14, 2025 00:56 ET (05:56 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.