Fortis Global Healthcare, which is owned by the Singh family, is acquiring an upcoming cancer hospital in Singapore from First Real Estate Investment Trust (First Reit) for S$33 million.
The acquisition will be financed by internal resources and completed in March.
Located at No 19 Adam Road, the hospital is a proposed three-storey Cancer Centre. The divestment will provide First Reit with a net cash gain of approximately S$8.3 million.
“The sale proceeds will provide First Reit with greater financial flexibility to pursue other possible attractive acquisition opportunities and / or to repay debt,” said Bowsprit Capital Corporation, Manager of First Reit, in an announcement to the Singapore Exchange (SGX). The sale will also reduce the trust’s gearing to 14.2 percent from 17.6 percent.
Fortis Global is creating verticals around various specialities as part of its vision to become an integrated healthcare provider, said Vishal Bali, CEO of the company, in an interview with The Business Times.
It also seeks to modify the facility’s current design and the hospital will likely come on-stream in the second or third quarter of 2012, he said.
“We are also looking at future expansion in Singapore,” added Mr. Bali.
The latest acquisition comes a month after Fortis Global’s acquisition of a significant stake in Australia-based Dental Corporation. In November 2010, the company also acquired Hong Kong-based primary healthcare service provider Quality HealthCare.
“We will continue to look for opportunities to further expand our presence in the region,” said Malvinder Singh, Executive Chairman of Fortis Global.