Wednesday, May 28, 2008

Parkway Life Reit puts in $35m to tap the silver dollar

Source : TODAY, Wednesday May 28, 2008

SINGAPORE-LISTED Parkway Life Reit is investing in the silver dollar. It is pumping $35 million to jointly buy two nursing homes in Japan.

By 2050, it is estimated one in three Japanese people will be over 65 years of age.

“The demand for good quality nursing homes is expected to grow as the population ages,” said Parkway Life’s chief executive Justine Wingrove.

This is Parkway Life’s first foray into the nursing home business. One home is in Yokohama City and the other in Osaka. Both are being bought under a sale and leaseback agreement with nursing home operator ZECS Community for 15 years with an option to extend for an additional five years. And both are expected to be yield accretive to the trust.

“We like these investments as the underlying income streams are index-linked to inflation and there are rent reviews every five years,” Ms Wingrove said.

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