CORPORATE
DEVELOPMENT
This maiden divestment capitalises on a unique
opportunity for PLife REIT to unlock value. The sale
of these properties at a good price has helped PLife
REIT rebalance and strengthen its Japan portfolio.
As PLife REIT remains competitive in its acquisition
activities, the divestment proceeds will provide
greater flexibility and speed for it to seize other
attractive investment opportunities to strengthen
its foothold.
TARGETED INVESTMENT: STRENGTHENING
FOOTHOLD
Capitalising on its strong fundamentals as a first-
mover amidst growing investment enthusiasm, PLife
REIT further strengthened its foothold in Japan with
five yield-accretive acquisitions.
In March 2014, PLife REIT acquired two nursing
homes and an extended-stay lodging facility for the
elderly in Osaka prefecture – Maison des Centenaire
Hannan, Maison des Centenaire Ohhama and Sunhill
Miyako, for ¥3,000,000,000 (approximately S$37.4
million). In sync with PLife REIT’s targeted expansion
approach of nursing homes in Japan, which focuses
on favourable locations and industry dynamics,
the acquisition of these three properties bolstered
PLife REIT’s market leadership in Osaka prefecture,
which is Japan’s third largest city by population
[1]
.
Underpinned by attractive property attributes, Sunhill
Miyako, the extended-stay lodging facility which is
located on the same site as Maison Des Centenaire
Hannan, sits on top of a scenic hill in Hannan City with
close proximity to Kansai International Airport and
the Hakotsukuri train station. Maison des Centenaire
Ohhama is located in a dense residential area with
good accessibility to the Sakai City centre and
within walking distance from Sakai train station.
All three properties are well maintained with stable
operational occupancy and on fresh 15-year master
lease arrangements with Miyako Group. Miyako
Group is an existing operator of two of PLife REIT’s
nursing homes, and the opportunity to re-engage
them for the acquisition resonates well with PLife
REIT’s strategy to align with reputable operators
with proven track records.
In line with PLife REIT’s asset recycling strategy to
strengthen the overall quality and growth potential
of its Japan portfolio, it further acquired two nursing
home properties namely Habitation Jyosui for
¥3,535,000,000 (approximately S$39.3 million) in
December 2014 and Ocean View Shonan Arasaki
[2]
for ¥1,700,000,000 (approximately S$18.9 million).
[1]
Population estimates for October 1, 2011 are according to those reported by the Statistics Bureau of Japan
[2]
Acquisition of Ocean View Shonan Arasaki was completed in January 2015
MAISON DES CENTENAIRE HANNAN
14
PA R K WAY L I F E R E I T
