Parkway Life REIT makes maiden investment in Japan with S$35m deal

Parkway Life REIT has bought a pharmaceutical product distributing facility in Japan’s Chiba prefecture for S$35 million.

The trust says the investment is yield-accretive, with a net initial yield of 5.3 per cent.

The facility, called J-REP Matsudo II, will also be used for manufacturing pharmaceutical products.

The investment is Parkway Life REIT’s first overseas venture and comes just seven months after it was listed on the Singapore Exchange.

The acquisition will be funded fully by debt, which will double the REIT’s gearing to 8 per cent.

J-REP Matsudo II is a freehold property in Matsudo City, Chiba prefecture. It is currently occupied by Inverness Medical Japan, a company involved with drug development, manufacturing, export and sales.

The two-storey building has a net lettable area of 3,240 square metres and a current unexpired lease term of nine years. – CNA/ir

Source : Channel NewsAsia – 16 Apr 2008

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