Over the Hari Raya weekend, a group of my friends decided to hop on the plane and head for Jakarta, the capital of Indonesia. Since it was a holiday, the traffic was great for us to enjoy a slow weekend over there.
However, given that some of us are shareholders of Singapore-listed First Real Estate Investment Trust (SGX:AW9U), we dropped by a few of the assets owned by First REIT in the city, to check out on our investments (J). For those who are not familiar, First REIT is one of the few healthcare REITs listed in Singapore. It owns 14 properties in Indonesia, mostly Hospitals operated by Siloam Hospital, three nursing home in Singapore and a hospital in South Korea. Most of its rental income is still coming from the hospital operated by Siloam Hospitals.
Being the nerds that we are, we dropped by Siloam Hospital Lippo Village and Mochtar Riady Comprehensive Cancer Centre to see how the facilities are being managed.
Siloam Hospital Lippo Village
This hospital is a 10-storey hospital building and is one of the largest private hospitals in the region. It is famous around Indonesia for its neuroscience and Cardiology specialties.
The entrance of the hospital really surprised me. It has a very relaxing ambiance to it with a coffee shop right at the entrance. It felt more like a shopping center than a hospital. Everything was in very good condition and well-maintained. Moreover, the hospital seems very professionally run, and in my opinion, no less than some of the hospital here in Singapore. At a certain hour of the day, the hospital even employs a pianist to play soothing tunes right in the entrance hall. I have to say I was impressed.
Entrance to Lippo Village
Neuroscience Centre Waiting Area
We wandered into the Neuroscience Centre clinics and it was layered with awards, and gifts from patients who have successfully survived, thanks to the department’s help. It gave me a sense that the hospital is really doing great work in the city.
Mochtar Riady Comprehensive Cancer Centre
Even before our trip, I was quite interested in visiting this hospital. It was because it is a vertical hospital that is build up to 29-storey high. The hospital is the first private palliative care and oncology wellness center in Indonesia. And it focuses on cancer treatment.
Front View of MRCCC
Front Hall Entrance of MRCCC
The building looks very new and the setting is quite similar to those of Lippo Village. From my understanding, most of the tenants are all part of the Lippo Group of companies, and so is Siloam Hospital and First REIT.
Thus, the conglomerate structure of Lippo Group allows it to develop properties and provide the amenities that is related to the whole experience within the property. That is one advantage that I was unaware before I drop by the hospitals.
From my visit, I can see that the assets are well maintained and the business seems to be well managed. Moreover, I found out that Siloam Hospitals is a listed company in Indonesia. This means that I can always check on the health of this hospital (pardon the pun), to ensure that the rental income to First REIT is not endangered.
Overall, the visit gave me more confidence in the properties managed by First REIT and its managers.
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The information provided is for general information purposes only and is not intended to be any investment or financial advice. All views and opinions articulated in the article were expressed in Stanley’s personal capacity. It does not in any way represent those of his employer and other related entities. Stanley owns First REIT.