Parkway Life REIT has taken a significant step in its portfolio management strategy by signing a sale and purchase agreement for the divestment of its Malaysian property, specifically strata units at the MOB Specialist Clinics in Kuala Lumpur. The agreement involves the sale of these strata units for a total divestment value of RM20.09 million. This transaction marks a strategic move by Parkway Life REIT’s subsidiary, Parkway Life Malaysia, as it seeks to optimize its asset performance within a competitive market.
The property spans an area of 2,444 square meters, comprising three ground floor units and three medical consulting suite units, complete with designated car park lots. As the sole asset of Parkway Life Malaysia, the property holds a freehold land tenure, which adds to its appeal. Financially, the sale is expected to generate a gain on disposal of approximately S$100,000, translating to RM335,613. However, the property contributes only 0.2% to Parkway Life Malaysia’s overall asset value, indicating that the financial impact on the REIT’s portfolio will be minimal.
This divestment is part of Parkway Life REIT’s ongoing portfolio management strategy, which emphasizes the importance of optimizing asset performance in a fluctuating market. As market conditions in Kuala Lumpur continue to evolve, the REIT remains focused on healthcare-related properties, recognizing their significance in its strategic direction.
The proceeds from the sale may be reinvested or allocated to other operational needs, further enhancing the REIT’s financial health. Following the signing of the agreement, the next steps will include the completion of the sale and the transfer of assets as per the terms of the agreement.
Parkway Life REIT will closely monitor market responses to this divestment and evaluate reinvestment opportunities with the generated proceeds. Future announcements regarding additional asset management strategies are anticipated, as Parkway Life REIT continues to assess and refine its asset portfolio.