On 24th March 2016, Parkway Life REIT announces the purchase of a new nursing home facility, “Silver Heights Hitsujigaoka Ichiban-kan & Nibankan” for JPY1,100 million. This is approximately S$13.6 million.
Location
The nursing home facility is located in the residential neighborhood within Sapporo City, capital city of Hokkaido prefecture with a master lease of 20 years.
Net Property Yield
The newly acquired nursing home facility is expected to generate a net property yield of 6.7%.
Occupancy
Occupancy of the nursing home facility is healthy at 94%.
Gearing Ratio
The cost for the acquisition of the new nursing home will be funded via long-term JPY denominated debts. The benefits of this approach is natural hedging Parkway Life REIT against JPY foreign exchange fluctuations. With the acquisition, Parkway Life REIT gearing will increase from 36.6% to 37.1%.
Portfolio
With the newly addition, Parkway Life REIT will have 48 properties......
