HSBC Institutional Trust Services (Singapore) Ltd., the trustee of First Real Estate Investment Trust, signed a facility agreement with Oversea-Chinese Banking Corp Ltd. in relation to syndicated loan facilities amounting to S$400.0 million that the trust is looking to secure.

The Singapore-listed real estate investment trust signed a deal to borrow the amount in January. The facilities comprise three-year, four-year and five-year term loan facilities denominated in Singaporean dollars, along with a three-year dual currency revolving credit facility.

Victor Tan, CEO of the REIT's manager, Bowsprit Capital Corp. Ltd., earlier said money drawn from the facilities will be used for partial refinancing of outstanding bank loans, to finance property investments and for general working expenditures.

The validity of the facilities is subject to, among other conditions, PT Lippo Karawaci Tbk owning at least a 25% stake in First REIT. In case an event of default was breached, S$570.0 million of facilities could be affected, according to a news released.

As of Feb. 22, US$1 was equivalent to S$1.32.