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OUE Lippo Healthcare, an operator of hospitals and nursing facilities, said it has entered into an agreement with Healthway Medical Corp to sublease the premises located at OUE Downtown 2.

This comes after OUE Lippo Healthcare and Alkas Realty agreed to end a lease agreement early without any penalties, the company said in a regulatory filing on December 2.

OUE Lippo Healthcare said it has entered into the agreement for a period of 36 months commencing on August 1 and expiring end-July 2020. The term comprised a rent-free period of four months between August 1, 2017 to November 30, 2017.

Under the terms of the agreement, OUE Lippo Healthcare agrees to pay about S$653,107 in all for the term of the sub-lease agreement.

This amount falls below 3 percent of the group's latest audited net tangible assets value as at end-December 2016 of S$131.7 million.

Healthway Medical Corp provides outpatient medical services in Singapore. The company offers care in the areas of family medicine, specialists care, dental and oral care and medical aesthetics.

Shares in OUE Lippo Healthcare rose 1.7 percent to S$0.12 while Healthway Medical Corp shares lost 2 percent to S$0.05 on the Singapore Exchange. OUE Lippo shares have risen 100 percent over an year.