CORPORATE
DEVELOPMENT
PLife REIT’s corporate developments in 2014 depict
the start of its journey of “
Grounded Defence,
Focused Growth
” as it continues to build on
its proven strategies while taking new steps to
enhance its growth. The year saw PLife REIT's three-
pronged growth approach "Targeted Investment,
Proactive Asset Management and Dynamic Capital
and Financial Management" being executed and
the initiation of a new strategic pillar of recycling
assets. This calibrated growth strategy serves to
transcend PLife REIT to its next phase of growth
as it continues to develop and revitalise its portfolio
while maintaining its defensive position to weather
market volatility.
PROACTIVEASSETMANAGEMENTANDASSET
RECYCLING: DELIVERING GREATER VALUE
Since its inception in 2007, PLife REIT’s dedicated
acquisition efforts have seen it successfully
expanding its asset under management from the
initial portfolio of 3 properties in Singapore to
47 properties across Singapore, Japan and
Malaysia, valued at approximately S$1.5 billion as
at 30 September 2014. To maximise the
performance, enhance competitiveness and extract
further value of its portfolio, PLife REIT embarks on
proactive asset management to drive the organic
growth. For the Malaysia assets, it managed to
secure rental rates at more than 50% higher than
previous level for the leases expired during the
year. Fostering good landlord-lessee relationships
remains important as PLife REIT continues to explore
opportunities to extract greater value through
potential initiatives like asset enhancement and
consolidation.
As PLife REIT matures from its infancy stage, it also
recognises the importance to continually review
the relevancy of each asset in order to build an
optimal portfolio of sustained value. In line with this
approach, PLife REIT rolled out its new strategic
pillar of “Asset Recycling” whereby assets deemed
to be of less strategic value shall be divested with
the proceeds contributed towards a war chest, which
would allow PLife REIT to seize other attractive
investment opportunities offering greater value.
Since its maiden entry in 2008 to the core market of
Japan, PLife REIT has leveraged on its clustering/
partnering approach and good landlord-lessee
relationships, successfully expanded its nursing
home portfolio and completed 8 asset enhancement
initiatives. Given the clear ageing demographics
of Japan, there has been growing interest in the
elderly care healthcare market which of late has
spurred increasing competition from private sector
investors. This has resulted in a more robust and
exuberant investment environment. As a first mover
in the market, PLife REIT is in a sweet spot to ride
on the investment exuberance.
HABITATION JYOSUI
12
PA R K WAY L I F E R E I T
