Singapore-listed healthcare real estate investment trust Parkway Life REIT (PLife REIT) (SGX:C2PU) announced on 26 December that it will be divesting seven nursing homes from its Japan portfolio for JPY7.95 billion (SGD88.3 million).

The properties, described by PLife REIT’s as “as assets of less strategic value” are being bought over by a special purpose vehicle of investment firm Fortress Japan Investment Holdings LLC.

The properties are namely Fureai no sono Nerima Takanodai, located at Nerima City, Tokyo Prefecture, Himawari Home Kamakura, located at Kamakura City, Kanagawa Prefecture, Supercourt Kadoma, located at Kadoma City, Osaka Prefecture, Supercourt Takaishi Hagoromo, located at Takaishi City, Osaka Prefecture, Sawayaka Hirakatakan, located at Hirakata City, Osaka Prefecture, Sawayaka Nokatakan, located at Fukuoka City, Fukuoka Prefecture and Sawayaka Parkside Shinkawa, located at Kitakyushu City, Fukuoka Prefecture.

With a purchase price that is said to be 8.3% above the latest valuation and 28.1% above the original purchase price, PLife REIT is expected to recognise an estimated divestment gain of approximately SGD12.3 million from the sale.

“The proceeds received from the divestment will further strengthen PLife REIT’s balance sheet and provide greater financial flexibility to seize other attractive investment opportunities offering better value”, said the REIT in an official statement on the divestment.

PLife REIT has also described the investment landscape in Japan as one that is facing “investment exuberance in the nursing home market”.

With the divestment, PLife REIT’s portfolio now stands at 41 properties with a total portfolio size of approximately SGD1.5 billion as at 26 December 2014. 37 of these properties are located in Japan.

Units of PLife REIT are currently listed on the Singapore Exchange at SGD2.37.