Tuesday, February 28, 2012

Parkway Life REIT expands Japan and Malaysia portfolio

Parkway Life REIT says it will be making further acquisitions in Japan and Malaysia to expand its portfolio.

In Japan, Parkway Life REIT plans to acquire three nursing home properties for a total of JPY3 billion ($50 million)1. The homes are expected to generate a net property yield of 7.83%. Completion of the acquisition shouke be completed by March.

The properties, which comprise Sawayaka Parkside Shinkawa, Sawayaka Hirakata Kan  and Sawayaka Higashikagura Kan, are well maintained and strategically located.

They enjoy a healthy weighted average operational occupancy of 90% as at December 2011. Shinkawa and Hirakata are located in densely populated residential areas in the prefectures of Fukuoka and Osaka respectively. Higashikagura is the only nursing located within a suburban residential area in the Hokkaido prefecture.

The acquisition of the properties is expected to be fully funded via a five-year committed and unsecured JPY denominated Term Loan Facility of JPY3.2 billion ($53.3 million), at an estimated all-in cost of 1.8%.

Meanwhile in Malaysia, unit Parkway Life Malaysia Sdn. Bhd., also entered into an agreement to acquire strata titled units/lots within Gleneagles Medical Centre, Kuala Lumpur (GMCKL) at RM16 million ($6.45 million4) in cash.

Parkway Life says this is an interested person transaction since the Malaysian vendor is related to PLife REIT through common shareholding by Integrated Healthcare Holdings Limited.

GMCKL is strategically located next to Gleneagles Hospital Kuala Lumpur and the medical precinct is well known in Kuala Lumpur for providing high quality medical care.

The GMCKL portfolio comprises three ground floor units, three medical consulting suites units on the 2nd and 7th floors, the entire 8th floor and 69 car park lots.

No comments:

Post a Comment