PLife REIT sells Japan nursing home for $9.4m

The disposal locks in a 38% gain over its 2008 purchase price.

Parkway Life REIT (PLife REIT) has sold a nursing home property in Hyogo Prefecture, Japan, for $9.4m (JPY1.17b), completing the transaction on 30 June, according to a bourse filing.

The sale price was 38% above the property's acquisition price of $6.8m (JPY844m) in 2008 and 5% above its latest independent valuation of $8.9m (JPY1.11b) as at 31 December 2025.

The property, Etoile Suma Rikyu, was sold to K.K. Etoile, the existing operator of the facility and a subsidiary of Japan's Yoshimei Group.

The purchaser paid the consideration in cash under the terms of the purchase and sale agreement.

Parkway Life REIT expects to recognise a gain on disposal of about $600,000 before tax.

The manager said the asset had a mature profile, increasing capital expenditure requirements, and limited valuation upside.

"This transaction demonstrates our disciplined approach towards active portfolio management and capital recycling," said Yong Yean Chau, CEO of Parkway Trust Management, the REIT's manager.

"The divestment allows us to unlock value from a mature asset whilst reducing future capital expenditure commitments," Yong added.

The manager said the sale proceeds will be redeployed into higher-growth opportunities. 

After estimated professional fees and other transaction expenses of about $200,000, the REIT expects net proceeds of about $9.2m.

The REIT acquired the property in 2008, and it had been part of its Japan portfolio for almost two decades.

The freehold property occupies a 2,675.56-square-metre site in Hyogo Prefecture and was completed in 1989.

(SG$1 = JPY124.38)