Parkway Life Reit sells Japan nursing homes

Singapore

PARKWAY Life Reit, which owns Singapore's Mount Elizabeth Hospital, has divested seven nursing homes in Japan for 7.95 billion yen (S$88.3 million). The sale price is about 28.1 per cent higher than the original purchase price, 16.1 per cent higher than the book value and 8.3 per cent higher than the latest independent valuation, the manager of the real estate investment trust (Reit) said on Friday evening. It added that there was "investment exuberance in the nursing home market in Japan".

The Reit is expected to recognise an estimated divestment gain of S$12.3 million over its net book value. Net proceeds and a consumption tax rebate receivable can be used to take on investment opportunities offering better value, the Reit manager said.