The buyer, K.K. Etoile, is the existing operator of the property and a subsidiary of the Yoshimei Group, an established Japanese corporate group.
"Given the asset’s mature profile, increasing capital expenditure requirements and limited valuation upside, the divestment is aligned with PLife REIT’s strategy of proactive recycling capital from older assets into opportunities with stronger longterm growth potential," says the REIT.
Yong Yean Chau, CEO of the REIT's manager, says the transaction is a sign of the REIT's disciplined approach towards active portfolio management and capital recycling.
"The divestment allows us to unlock value from a mature asset at an attractive valuation while reducing future capital expenditure commitments. More importantly, the direct sale to the existing operator provides strong execution certainty and enables an efficient and orderly exit," he adds.
See also: FCT to divest White Sands mall for $467 mil; 8.4% above independent valuation
Parkway Life REIT units closed at $4.05, down 0.74%.
