Parkway Life REIT’s wholly-owned Malaysia subsidiary Parkway Life Malaysia has entered a sale and purchase agreement for the divestment of strata units and lots at MOB Specialist Clinics in Kuala Lumpur for RM20.09 million ($6.09 million).
The property spans 2,444 metres square and has a freehold land tenure. There are three ground floor units, three medical consulting suite units and car park lots.
The REIT is expected to recognise a gain on disposal of investment of about $100,000. The property is currently Parkway Life Malaysia’s sole asset and contributes 0.2% to its asset value.
The divestment when completed will result in Parkway Life REIT no longer having any investments in Malaysia.
The REIT says that the sale consideration amount is about 25.6% higher than the original purchase price of the property of RM16 million in 2012. It is 4.6% above the average of the latest valuation of the property at RM19.2 million as at Dec 31, 2024.
Parkway Life REIT says the divestment is part of its manager’s asset recycling strategy to rebalance and strengthen the overall quality and growth potential of its portfolio.
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It will allow for greater financial flexibility for the REIT to seize other investment opportunities.
Units in Parkway Life REIT closed 2 cents higher or 0.478% up at $4.20 on Apr 21.
