Singapore’s Parkway Life REIT buys 3 nursing properties in Japan

05, Dec. 2019

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SINGAPORE, NNA – Parkway Trust Management Ltd., the manager of Parkway Life Real Estate Investment Trust, has sealed a purchase deal for three nursing rehabilitation facilities in Japan at a cost of 3.7 billion yen ($34 million) to enhance its property portfolio in aging Japan.

The fund management firm said in a statement Tuesday the transaction will be completed by the end of this month. One of Asia’s largest listed healthcare REITs by asset size will consist of 53 properties with a total value of $1.92 billion Singapore dollars ($1.4 billion) through the purchase.

The acquisition is expected to deliver immediate yield growth to the REIT, the statement said.

The three facilities -- Hodaka no Niwa in Takayama, Gifu Prefecture in central Japan, and Orange no Sato in Arita, Wakayama Prefecture and Haruno Sato in Shunan, Yamaguchi Prefecture, both in western Japan -- have around 100 beds each and are located in residential areas in each prefecture, according to the statement.

“The strong ageing demographics of Japan continue to position PLife REIT favourably as we acquire aged care properties to fortify the resiliency and quality of our portfolio,” Yong Yean Chau, executive director and chief executive officer of the fund manager, said in the statement.

The healthcare REIT includes 46 assets located in Japan, including one pharmaceutical product distributing and manufacturing facility in Chiba Prefecture, east of Tokyo, and 45 nursing home and care facility properties across the most rapidly aging country in the world.

“We have further deepened our presence in Japan, which represents one of PLife REIT’s growth engines,” the CEO said.