Singapore-listed Parkway Life Real Estate Investment Trust (PLife REIT) has entered the European market through a €111.2m sale-leaseback transaction, acquiring 11 nursing homes in France from care home operator DomusVi.
PLife REIT intends to issue a private placement to raise about S$180m (€126m) to finance the acquisition.
PLife REIT said the expansion into Europe positioned the trust for the next phase of growth and would also strategically diversify its portfolio.
The acquisition will mark PLife REIT’s maiden entry into a third key market, but its focus is on its core market of Singapore.
Yong Yean Chau, CEO of PLife REIT’s manager Parkway Trust Management, said: “Through this acquisition, PLife REIT will extend our growth into a new market with strong fundamentals – ageing population with mature health and aged care sectors.
“This will allow PLife REIT to optimise its investment exposure and further diversify the geographical risks within its portfolio, thereby enhancing risk-adjusted returns for its unitholders.”
PLife REIT said “this portfolio optimisation strategy” would enable PLife REIT to mitigate potential regional and operator-level risks and capitalise on different economic cycles and growth opportunities in each market.
Sylvain Rabuel, CEO of DomusVi, said: “This transaction marks the start of our win-win collaboration that underscores our shared commitment to long-term growth, and we look forward to exploring new opportunities together in the European market.”
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