SG Realty: Parkway Life REIT’s Japan acquisition; OKP Holdings’ Perth buy

Singapore deals
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PLife REIT has acquired a Japanese nursing home while OKP Holdings has bought a Perth office property.

PLife Reit acquires Japanese nursing home

Parkway Trust Management Limited, the manager of Parkway Life Real Estate Investment Trust (PLife REIT), has announced in a media release the acquisition of a nursing rehabilitation facility, the Konosu Nursing Home Kyoseien, under a sale-and-leaseback agreement with Iryouhoujin Shadan Kouaikai for a negotiated consideration of JPY 1500 million ($13.7 million).

KK Halifax Associates independently valued the property at JPY1,620 million, based on the latest appraised values for the entire portfolio as at 31 December 2017. The acquisition will be financed by internal funds and JPY-denominated debt.

HSBC Institutional Trust Services (Singapore) Limited, as trustee of PLife REIT, has through its wholly-owned subsidiary, Parkway Life Japan, also entered into a Tokumei Kumiai agreement (or silent partnership) for the acquisition of the facility, which provides long-term elderly care with nursing care and functional training under the supervision of medical experts.

The facility is strategically located in the residential neighbourhood of Konosu City, Saitama Prefecture, within the Greater Tokyo Region. It is easily accessible by train via Kitamoto train station and is an approximate 90-minute drive from the central business district of Tokyo.

The acquisition will bring PLife REIT’s portfolio to 50 properties with a total value of S$1.75 billion.

OKP Holdings acquires Perth office property

Infrastructure and civil engineering company OKP Holdings Limited has acquired its first overseas property, a freehold office complex, 6-8 Bennett Street, in Perth, Australia for A$43.5 million ($33.9 million).

Through its wholly-owned subsidiary OKP Land Pte. Ltd., OKP Holdings holds a 51 per cent interest in Raffles Prestige Capital Pte. Ltd. (RPCPL) which in turn holds a stake in Bennett WA Investment Pty Ltd that owns the modern office complex.

HSB Holdings Pte. Ltd., an investment company in Singapore, holds the remaining 49 per cent stake in RPCPL. Located 900 metres west of the Central Business District (CBD) of Perth, 6-8 Bennett Street comprises two adjoining buildings – a four-storey building and a ‘Grade A’ nine-storey building – as well as a multi-storey car park, that sit on a land area of 3,115 square metres (sqm).

With a net lettable area (NLA) of about 10,219 sqm, the property is close to 68 per cent occupied by a mix of government and corporate tenants whose combined leases contribute to the office complex’s weighted average lease expiry (WALE) by an income of 6.02 years.

OKP Group Managing Director Or Toh Wat commented: “The acquisition of 6-8 Bennett Street marks the Group’s first overseas investment property. Our maiden entry into Australia represents a significant milestone for us. This strategic move is in line with our long-term strategy to diversify our earnings and build a recurrent income base.

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