Parkway Life REIT investing in two nursing homes in Japan

Parkway Life REIT investing in two nursing homes in Japan

 

SINGAPORE: Parkway Trust Management, the manager of Parkway Life Real Estate Investment Trust, is investing in two nursing homes in Japan for some S$34m.

 

One of the homes is located in Yokohama City, Kanagawa Prefecture and the other is in Ibaraki City, Osaka.

 

The vendor of both properties is nursing home operator ZECS Community Co.

 

Under the sale and leaseback agreements, ZECS CC will lease back 100 percent of the space at each property for 15 years, with an option to extend the leases for an additional five years.

 

Parkway says demand for high-quality nursing homes is expected to soar in a country where more than a quarter of all Japanese will be at least 65 years old by 2025.

 

It expects to fund both investments by debt, which will increase the REIT’s gearing from 8 percent to 11 percent.

 

The investments are expected to be completed on May 30. – CNA/ir

 

Source: Channel NewsAsia

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