<article><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=parkway+life+reit">Parkway Life REIT</a>, a major healthcare REIT in Asia, has sold four of its nursing homes in Japan to Fortress Japan Investment Holdings for 3.72 billion yen ($33.8 million).</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=parkway+life+reit">Parkway Life REIT</a>, a major healthcare REIT in Asia, has sold four of its nursing homes in Japan to Fortress Japan Investment Holdings for 3.72 billion yen ($33.8 million).
The transaction was implemented through Parkway Life REIT’s Japan-domiciled special purpose entities.
The company said there was intense compression in terms of cap rates for the nursing home properties in Japan, riding the investment exuberance in the market.
The divestment properties were originally purchased by Parkway Life REIT for some $25.2 million, which means the sale price is 34.4 per cent higher than the original purchase price, 4.8 per cent higher than the assets’ latest valuation and 5.1 per cent above the net book value.
The Singapore-based firm said it expected to recognise an estimated divestment gain of approximately S$5.2 million ($3.6 million) over the net book value.
The four nursery homes, all located in Osaka, are Bon Sejour Ibaraki, Legato Higashi Sumiyoshi, Legato Katano and Royal Residence Gotenyama.
“As part of the Group’s proactive asset management approach, we continuously monitor the performance of PLife REIT’s portfolio of assets in all regions. Given the recent macroeconomic shocks that have reverberated across the global markets, it is ever more paramount for us to work towards preserving our portfolio quality to maintain our competitive position,” said Yong Yean Chau, CEO of Parkway Trust Management Limited, the manager of the healthcare REIT.
The proceeds from the exit will increase the company’s financial flexibility to seize other attractive investment opportunities offering better value.
Prior to these four assets, Parkway Life REIT completed its maiden asset recycling initiative in Q1, 2015. Meanwhile, it said the second divestment will enable future acquisitions of other attractive assets to rebalance and enhance the overall resiliency of its Japan portfolio.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/parkway-life-buys-4-nursing-homes-in-japan-for-s67m-4051/">Parkway Life buys 4 nursing homes in Japan for S$67m</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/alert-parkway-reit-sells-7-nursing-homes-88-3m-1662/">Parkway REIT sells 7 nursing homes in Japan</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/plife-reit-issues-3-3b-yen-fixed-rate-notes-due-2022-35775/">Singapore: PLife REIT issues $29m fixed rate notes due 2022</a>

Parkway Life REIT sells nursing home assets to Fortress Japan for $33.8m

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Parkway Life REIT sells nursing home assets to Fortress Japan for $33.8m

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