Parkway Life REIT is disposing its industrial property in Japan known as P-Life Matsudo for a total consideration of JPY2.9 billion (SGD37 million).
The transaction completed on 29 January, with the sale consideration paid in cash.
The asset was originally purchased by the REIT for JPY2.59 billion in May 2008 with a net operating income yield of 5.3%.
Its book value as at 31 December 2020 was approximately SGD31.0 million, with valuation at SGD30.9 million.
As such, the total sale consideration is about 20.3% above the latest valuation, 19.8% above the book value, and 12.0% above the original purchase price.
Parkway Life REIT is expected to recognise an estimated pre-tax gain of approximately SGD5.1 million.
“The proceeds received from the divestment will provide greater financial flexibility to seize other attractive investment opportunities offering better value as PLife REIT seeks to strengthen its position in its existing key markets”, the REIT said.
Parkway Life REIT was last done on the SGX at SGD4.15, which implies a distribution yield of 3.3% according to data compiled on the Singapore REITs table.