" First REIT is managed by First REIT Management Limited, which is 60% owned by OUE Limited and 40% owned by OUE Lippo Healthcare Limited (" OUELH" ). "
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https://www.businesstimes.com.sg/companies-markets/first-reit-receives-non-binding-proposal-on-rental-restructuring-from-lippo

OUE Lippo Healthcare said on Monday that funds owned by Crest Capital Asia have agreed to pay it a sum of S$12.6 million.

 

In July, the Singapore High Court had issued a favourable judgement for the company in respect of a suit, and held that the Crest entities are jointly and severally liable for an aggregated sum of S$12.6 million.

 

On Aug 29, the Crest entities agreed to repay the judgment debt to the company, plus interest calculated at 5.33 per cent per annum, through three instalments on Sept 3, Sept 24 and Oct 15.

 

As announced previously on July 16, the Crest entities filed an appeal against the judgement. The Court of Appeal may affirm, vary or set aside the judgment, including the judgment debt.

 

OUE Lippo Healthcare was formerly known as International Healthway Corp, before it was acquired by hotel group and developer OUE in 2017.

 

OUE Lippo Healthcare (OUELH) has sunk into the red with a net loss of S$1.3 million for the six months ended June 30, 2020 compared with a net profit of S$334,000 a year ago. 

 

The Catalist-listed company said in a regulatory filing on Thursday that the decrease in the group&rsquo s share of profits of equity-accounted investees was due mainly to a lower share of results from associated company First Real Estate Investment Trust (First Reit), and the group&rsquo s share of loss from its joint ventures in Myanmar.

 

First Reit' s manager on Wednesday reported a 46 per cent drop in income available for distribution for H1, due in part to rental relief initiatives extended to tenants in Singapore, Indonesia and South Korea to &ldquo cushion the strains&rdquo caused by the Covid-19 pandemic.

 

As at Dec 31, 2019, OUE Lippo Healthcare' s ownership interest in First Reit stood at 13.8 per cent, based on its 2019 annual report. First Reit is material to the group and is equity accounted. 

 

Loss per share for OUELH stood at 0.028 Singapore cent for the half year, compared to an earnings per share of 0.008 cent a year ago.

 

Revenue for H1 rose 4 per cent to S$9.9 million, from S$9.5 million a year ago. This was mainly the result of a stronger yen relative to the Singapore dollar, OUELH said.

 

The group&rsquo s revenue comprises leasing income from 12 nursing homes in Japan, revenue from its pharmaceutical distribution business in China, and revenue from Wuxi Lippo Xi Nan Hospital, which the group acquired a 70 per cent stake in on Oct 31, 2019.

 

Leasing income from the Japan nursing homes contributed close to 90 per cent of total revenue, OUELH said.

 

No dividend was declared for the half year, unchanged from a year ago. OUELH said no dividend was declared or recommended after taking the group&rsquo s operational cash flow requirements into consideration.