[SINGAPORE] The manager of Parkway Life Real Estate Investment Trust (PLife Reit) announced on Monday (Apr 21) that the healthcare Reit is selling freehold strata units and lots of a Malaysian property for RM20.1 million (S$6.1 million).
The deal will mark the Reit’s exit from Malaysia, as the units and lots were its sole investment in the market and contributed only 0.2 per cent to the trust’s asset value, said the manager in a bourse filing.
The strata units and lots are located in MOB Specialist Clinics, within the compound of Gleneagles Hospital Kuala Lumpur. The hospital is owned and operated by integrated healthcare provider IHH Healthcare, a substantial unitholder of PLife Reit.
The purchaser, Pantai Medical Centre, is a wholly owned unit of IHH Healthcare.
The units and lots have a floor area of 2,444 square metres and comprise three ground floor units, three medical consulting suite units on the second and seventh floors, the entire eighth floor and 69 carpark lots.
The manager noted that the divestment is in line with the manager’s asset recycling strategy and will strengthen PLife Reit’s balance sheet.
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It will also “provide greater financial flexibility for PLife Reit to seize other attractive investment opportunities offering better value”, said the manager.
The sale consideration is around 25.6 per cent higher than the original purchase price of RM16 million in 2012.
It is also 4.6 per cent above the average of the units and lots’ latest valuations of RM19.2 million as at Dec 31, 2024. Independent valuations were carried out by Nawawi Tie Leung Property Consultants and Knight Frank Malaysia.
The manager added that a proportion of the sale consideration has been paid by Pantai Medical Centre in cash on Monday, with the remaining to be paid pursuant to terms of the sale and purcahse agreement.
Units of PLife Reit ended up 0.5 per cent or S$0.02 at S$4.20 on Monday, before the announcement. Shares of IHH Healthcare closed 1.5 per cent or S$0.03 higher at S$2.04.
