Parkway Life REIT acquires two Japan nursing homes for S$49.4M

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Parkway Life REIT has acquired two nursing home properties in Japan for 4.10 billion yen, or around S$49.4 million, from Kabushiki
Kaisha Strawberry Firm and Kabushiki Kaisha Anthebliss, the REIT’s manager said in a filing to SGX Wednesday.

“We have further strengthened the quality of our portfolio and presence in Japan, which continues to be a valued core market for PLife REIT since our maiden entry in 2008,” Yong Yean Chau, CEO of the REIT’s manager, said in the statement.

“Leveraging on our robust strategic partnership and the resilient aging demographics in Japan, we continue to monitor aged care market of the nation vigilantly as we seek and seize opportunities in a timely and disciplined manner to optimise the resiliency of our portfolio and
deliver immediate yield growth,” Yong said.

The acquisition price is around 7.7 percent below the 4.44 billion yen valuation set in May by Enrix, the REIT said, adding the properties are projected to generate a net property yield of 5.7 percent.

The REIT said the acquisitions completed an asset recycling move which began with the January divestment of non-core industrial property, P-Life Matsudo.

The deal will be funded with a mix of the proceeds from the P-Life Matsudo divestment and yen-denominated facilities, the REIT said.

The properties are located in Fukuoka and Tokyo prefectures, with good transportation connectivity, the REIT said.

The acquisition is expected to be completed in the third quarter of this year, bringing the REIT’s portfolio to 55 properties valued at around S$2 billion.