Home Capital Deals, joint ventures & alliances

PLife REIT and IHH Healthcare extend strategic collaboration for Singapore hospitals

Samantha Chiew
Samantha Chiew 7/14/2021 5:28 PM GMT+08  • 3 min read
PLife REIT and IHH Healthcare extend strategic collaboration for Singapore hospitals
PLife REIT and IHH in strategic collaboration for Singapore hospitals.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

ParkwayLife REIT’s manager announced (along with sponsor IHH Healthcare) a long awaited Master Lease Agreement renewal of its three hospitals in Singapore, Mount Elizabeth, Gleneagles and Parkway East Hospital on July 14.

Based on pro forma numbers for FY2020, the distribution per unit (DPU) of 13.79 cents rises to 14.3 cents at the end of year 1 of the renewal term, and to 18.26 cents at the end of year 4. The increase in rents of the new master lease agreement will also have a positive impact on valuation. PLife REIT’s net asset value (NAV) was at $1.96 as at Dec 31, 2020. Based on this, pro forma NAV would be $2.35 at the end of year 1 and $2.49 at the end of year 4. Asset valuation of the REIT would rise to $1.45 billion at the end of year 1 from $1.21 billion as at Dec 31, 2020, and to $1.69 billion at the end of year 4. Plife REIT's total portfolio value as at Dec 31, 2020 was $2.02 billion.

In connection with the Master Lease Agreement, and the proposed capital expenditure of $150 million to upgrade the properties (renewal capex), PLife REIT’s sponsor IHH Healthcare will grant the REIT a right of first refusal for Mount Elizabeth Novena Hospital Property for a period of 10 years. Mount Elizabeth Novena was valued at RM3.96 billion as at Dec 31, 2020.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.