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KUALA LUMPUR (Feb 5): Khazanah Nasional Bhd's 35%-owned associate, Parkway Life Real Estate Investment Trust (REIT), has sold a non-core industrial property in Japan known as P-Life Matsudo for ¥2.9 billion (about RM112 million) cash to a Japanese real estate investment firm, Hulic Co Ltd.
In a statement, the REIT is expected to recognise an estimated gain of S$5.1 million. The divestment is also at 20.3% or ¥490 million above the latest valuation of ¥2.41 billion of the property as at Dec 31, 2020, 19.8% above the book value.
"The divestment which sees us divesting our non-core asset resonates well with our recycling strategy to rebalance and strengthen the growth potential of our Japan portfolio," said Yong Yean Chau, chief executive officer of Parkway Trust Management Ltd, the manager of the REIT.
Currently, Parkway Life REIT owns 50 properties in Japan consisting mainly of nursing homes in various prefectures, contributing to 96.7% of its Japan portfolio's revenue.
The divested property was Parkway Life REIT's maiden investment in Japan and its only industrial property.
"We are pleased to divest Matsudo at an opportune time at an attractive sale yield of 4.3%. With the sale proceeds from this divestment, we will have greater financial strength and flexibility to acquire other quality assets to strengthen our position in the existing key market of Japan, continuing on our track record of creating greater value for our unitholders through strategic asset recycling initiatives," said Yong.
The Singapore-based healthcare REIT owns a well-diversified portfolio of 54 properties with a total portfolio size of approximately S$2.02 billion as at Dec 31, 2020.
It owns the largest portfolio of strategically located private hospitals in Singapore comprising Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital.
In addition, it has 50 assets located in Japan, including one pharmaceutical product distributing and manufacturing facility in Chiba Prefecture as well as 49 high quality nursing home and care facility properties in various prefectures of Japan. It also owns strata-titled units/lots in medical office building (MOB) Specialist Clinics Kuala Lumpur in Malaysia.
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