Parkway Life REIT buying six properties in Japan

Mainboard-listed Parkway Life REIT on Wednesday said it is buying six properties in Japan worth about S$60.5 million.

The properties are nursing home and care facilities, and will be funded by borrowings.

Five of the properties are located in densely populated residential areas in Japan’s Fukuoka Prefecture, with the remaining one in Akita Prefecture.

Parkway Life REIT said the purchases are yield-accretive, with an expected net property yield of 8.08 per cent.

It added that the purchases will also introduce more diversity in its revenue stream.

The healthcare trust said each of the six properties will have a fresh 20-year master lease, with back-up operator arrangements and rental income guarantees.

Parkway Life REIT has appointed Black Hills Investment, a private real estate asset management firm, to manage the properties.

The trust said the prospects for the elderly care industry in Japan are bright, given the country’s ageing population.

Source : Channel NewsAsia – 9 Jun 2010

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