The Manager of First Real Estate Investment Trust (SGX:AW9U) (First REIT) announced on 29 November that it will restructure the master lease agreements of 14 Indonesia hospital assets. 11 of the assets are leased to Lippo Karawaci Tbk (LPKR), with the remaining three hospitals leased to PT Metropolis Propertindo Utama (MPU). A memorandum of understanding was signed with both LPKR and MPU on 28 November 2020 regarding the restructuring of the master lease agreements. Under the new lease terms, lease for the 11 assets under LPKR will be extended to 31 December 2035, with an option for a further 15-year term by mutual agreement. The rental will be the higher of either the base rent or the variable rent. The aggregate commencement base rent, starting 1 January 2021, will be approximately S$50.9 million (or approximately IDR550.7 billion) per annum. The commencement base rent will enjoy a fixed escalation rate of 4.5% per annum, compared to the existing terms where base rent escalation is capped at 2.0% per annum.