Parkway Life Real Estate Investment Trust (PLife REIT) has acquired a nursing home property in Osaka, Japan.
The newly-built HIBISU Higashi Sumiyoshi asset is being acquired at 9.1% below valuation and will increase PLife REIT’s portfolio in Japan to 60 properties worth around S$676.8m (€466.7m).
The Singapore-based group will take over the existing master lease agreement from developer FDS. PLife REIT forged a strategic alliance with FDS in 2023.
Yong Yean Chau, CEO of Parkway Trust Management, manager of the listed vehicle, said: “Japan remains a crucial core market for PLife REIT as we drive our next phase of growth.
“This second collaboration with FDS and [Japanese nursing home operator] BISCUSS strengthens our existing working relations and allows us to secure a pipeline of quality and new assets in Japan, amid increasing competition in the sector.”
As with its other transactions in Japan, PLife REIT will fund the acquisition with JPY-denominated debts to hedge against foreign exchange risks from potential currency volatility.
PLife REIT’s pan-Asian portfolio of income-producing real estate and real estate-related assets, includes three of Singapore’s top private hospitals. The group owns a S$2.3bn healthcare portfolio.
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