First REIT secures S$70m 3-year loan from OCBC Bank

First Real Estate Investment Trust, or First REIT, has secured a three-year loan facility from OCBC Bank worth S$70 million.

OCBC will also provide a notional amount of S$50 million as part of an Interest Rate Derivative Facility for interest hedging on this loan.

This will then limit First REIT’s exposure to possible upward fluctuations in interest rates.

The trust said some of the money will be used to refinance outstanding bank loans of some S$50 million.

The rest of the funds will go towards the redevelopment of its Adam Road Hospital and possible future asset acquisitions.

First REIT is Singapore’s first healthcare real estate investment trust.

Source : Channel NewsAsia – 6 Apr 2009