<article><p>Singapore listed property trust <a href="http://www.dealstreetasia.com/?s=Parkway" target="_blank"><span style="text-decoration: underline; color: #0000ff;">Parkway Life </span></a>has sold seven nursing homes in Japan to <a href="http://www.fortress.com/" target="_blank"><span style="text-decoration: underline; color: #0000ff;">Fortress Japan Investment Holdings LLC</span></a>, a leading global investment firm, for ¥7,950,000,000 (approximately S$88.3 million or $66.7 million), the company said.</p></article>

<p>Singapore listed property trust <a href="http://www.dealstreetasia.com/?s=Parkway" target="_blank"><span style="text-decoration: underline; color: #0000ff;">Parkway Life </span></a>has sold seven nursing homes in Japan to <a href="http://www.fortress.com/" target="_blank"><span style="text-decoration: underline; color: #0000ff;">Fortress Japan Investment Holdings LLC</span></a>, a leading global investment firm, for ¥7,950,000,000 (approximately S$88.3 million or $66.7 million), the company said.</p>
<p>The divestment comes within weeks of trust making two acquisitions in Japan.</p>
<p>Last week, Parkway Life Real Estate Investment Trust (PLife REIT), which ranks among the region’s largest listed healthcare trusts, had <a href="http://www.dealstreetasia.com/stories/singapore-roundup-hpl-plife-reit-psa/" target="_blank"><span style="text-decoration: underline; color: #0000ff;"><span style="text-decoration: underline;"><strong>purchased nursing home Ocean View Shonan</strong> </span><strong>Arasaki for S$18.9 million</strong></span></a> from Oueikikaku Kabushiki Kaisha. Earlier this month, it had reached a deal to buy another nursing home, Habitation Jyosui S$39.3 million from Ostara Japan Two TMK.</p>
<p>PLife REIT had purchased these seven nursing homes for around ¥6.2 billion (S$68.9 million) and they had book value of around S$75.7 million. As on November 1, 2014, the seven nursing homes had a valuation of S$81.6 million.</p>
<p>This implies that the trust completed the deal at 8.3 per cent above the latest valuation, 16.1 per cent above the net book value and 28.1 per cent above the original purchase price.</p>
<p>The deal is expected to give PLife REIT an estimated divestment gain of approximately S$12.3 million, equivalent to about 16.1 per cent over the book value of the properties of S$75.7 million as at 31 December 2013.</p>
<p>The company said the divestment was part of its plans unlock value from properties which were of less strategic value, and the deal was a step towards recycling strategy to re-balance and strengthen the overall quality of its Japan portfolio.</p>
<p>The divestment will further strengthen the trust’s balance sheet and provide greater financial flexibility to seize other attractive investment opportunities offering better value, which would serve to enhance the overall value and growth potential of Parkway Life REIT, the company added in its communication to the local exchange.</p>
<p>The trust, which has a market cap of S$1.43 billion closed flat at $2.37 Friday.</p>
<p>“As a first mover in the market, PLife REIT is well-positioned to take advantage of the growing elderly care healthcare market in Japan which has of late spurred increase competition from private sector investors resulting in a more robust and exuberant investment market.</p>
<p>This maiden divestment capitalises on an unique opportunity for PLife REIT to realise the seven properties at a good price as we strengthen our Japan portfolio mix. As we remain competitive in making our acquisitions, the divestment proceeds will enable us to acquire other attractive assets which would serve to enhance the overall value and growth potential of PLife REIT”, said Yong Yean Chau, chief executive officer of the Manager.</p>
<h2><span style="color: #ff0000;"><strong>The Divestment Properties</strong></span></h2>
<ul>
<li>
<h5>Fureai no sono Nerima Takanodai, located at Nerima City, Tokyo Prefecture</h5>
</li>
<li>
<h5>Himawari Home Kamakura, located at Kamakura City, Kanagawa Prefecture</h5>
</li>
<li>
<h5>Supercourt Kadoma, located at Kadoma City, Osaka Prefecture</h5>
</li>
<li>
<h5>Supercourt Takaishi Hagoromo, located at Takaishi City, Osaka Prefecture</h5>
</li>
<li>
<h5>Sawayaka Hirakatakan, located at Hirakata City, Osaka Prefecture</h5>
</li>
<li>
<h5>Sawayaka Nokatakan, located at Fukuoka City, Fukuoka Prefecture</h5>
</li>
<li>
<h5>Sawayaka Parkside Shinkawa, located at Kitakyushu City, Fukuoka Prefecture</h5>
</li>
</ul>


Parkway REIT sells 7 nursing homes in Japan

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Parkway REIT sells 7 nursing homes in Japan

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