Parkway Life REIT property, Mount Elizabeth Hospital, in Singapore. (Photo: REITsWeek)

Parkway Life REIT has acquired Konosu Nursing Home Kyoseien in the Saitama prefecture of Japan for JPY1,500 million (USD13.7 million).

The property, which was acquired under a sale-and-leaseback agreement with nursing home operator Iryouhoujin Shadan Kouaikai at a discount of approximately 7.4% below valuation, is expected to generate a net property yield of 6.7% for the REIT.

As at 31 December 2017, the property is 100% occupied, and will lengthen Parkway Life REIT’s weighted average lease expiry (WALE) that currently stands at approximately 7.91 years and 13.17 years for its entire portfolio, and Japanese portfolio respectively.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.