Parkway Life Reit to exit Malaysia
[SINGAPORE] The manager of Parkway Life Real Estate Investment Trust (PLife Reit) announced on Monday (Apr 21) that the healthcare Reit is selling freehold strata units and lots in a Malaysian property for RM20.1 million (S$6.1 million).
The deal will mark the Reit's exit from Malaysia, as the units and lots were its sole investment in the market and contributed only 0.2 per cent to the trust's asset value, said the manager in a bourse filing.
The strata units and lots are located in MOB Specialist Clinics, within the compound of Gleneagles Hospital Kuala Lumpur. The hospital is owned and operated by integrated healthcare provider IHH Healthcare , a substantial unitholder of PLife Reit.
In addition, the purchaser, Pantai Medical Centre, is a wholly owned unit of IHH Healthcare.
The units and lots have a floor area of 2,444 square metres and comprise three ground floor units, three medical consulting suite units on the second and seventh floor, the entire eighth floor and 69 carpark lots.
The manager noted that the divestment is in line with the manager's asset recycling strategy and will strengthen PLife Reit's balance sheet.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
It will also 'provide greater financial flexibility for PLife Reit to seize other attractive investment opportunities offering better value', said the manager.
The sale consideration is around 25.6 per cent higher than the original purchase price of RM16 million for the units and lots in 2012.
It is also 4.6 per cent above the average of the units and lots' latest valuations of RM19.2 million as at Dec 31, 2024. Independent valuations were carried out by Nawawi Tie Leung Property Consultants and Knight Frank Malaysia.
The manager added that a proportion of the sale consideration has been paid by Pantai Medical Centre in cash on Monday, with the remaining to be paid pursuant to terms of the sale and purcahse agreement.
Units of PLife Reit ended up 0.5 per cent or S$0.02 at S$4.20 on Monday, before the announcement. Shares of IHH Healthcare closed 1.5 per cent or S$0.03 higher at S$2.04.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
3 hours ago
- Straits Times
China's WeRide, M'sia's Causeway Link among firms bidding to run driverless public buses in S'pore
LTA's plan is for the autonomous public buses to operate alongside existing manned buses for an initial three-year period. PHOTO: ST FILE SINGAPORE - Chinese self-driving technology start-up WeRide and a consortium led by Malaysian bus operator Handal Indah, also known as Causeway Link, are among four companies that have submitted bids to participate in a trial of autonomous public bus services here. The Land Transport Authority (LTA) called a tender in January seeking proposals for the trial, which is slated to start from mid-2026 on two public bus routes – one in Marina Bay and Shenton Way, and the other in one-north in Buona Vista. The tender, which closed on June 9 and is expected to be awarded by the end of 2025, drew four submissions in total. Apart from WeRide and the Handal Indah consortium, the other two tenderers are vehicle distributor Cycle & Carriage Automotive and another consortium led by MKX Technologies. According to business records, MKX Technologies was incorporated in Singapore in April and has two shareholders. The majority owner is X Star Technology, a Singapore subsidiary of Chinese online vehicle financing company Yixin Group, and the minority owner is MK.X, a Japanese electric car-sharing firm. Government procurement website GeBiz did not state the other companies that make up the Handal Indah and MKX Technologies consortiums. The Straits Times has contacted WeRide, Handal Indah, Cycle & Carriage and X Star Technology for comment. LTA previously said that it will start the trial by buying six autonomous buses with at least 16 seats, and deploying them on bus services 400 and 191. This is so the authority can assess the feasibility of self-driving technology for public bus services and gain operational insights. Former Transport Minister Chee Hong Tat had said that the use of autonomous vehicles would help to address pressing manpower challenges in the public transport sector, where it has been difficult to hire drivers. LTA's plan is for the autonomous public buses to operate alongside existing manned buses for an initial three-year period. Depending on how they perform, LTA may buy up to 14 more autonomous buses to expand the trial to two more routes later. LTA said it chose to trial the self-driving buses on services 400 and 191 as they are shorter and simpler routes. The authority is also taking a phased approach so it can thoroughly assess the reliability of autonomous vehicle technology while ensuring public safety. During the initial phase of the trial, the self-driving buses will have bus drivers on board to act as safety operators, and the buses will be monitored in real time by LTA. Extra safeguards, such as requiring all passengers to be seated and to wear seat belts, will be put in place, and a remote safety operator will be allowed to take over the supervisory role only after at least six months of testing. LTA had said that the autonomous vehicle developer selected for the trial will have to work with public transport operator SBS Transit, which runs services 400 and 191, to come up with operational concepts and plans for operating the autonomous public buses. The authority said it will evaluate the proposals it receives based on the maturity of the technology, the record of the autonomous vehicle developer and its ability to meet operational needs. Other factors being considered include the supporting infrastructure, such as fleet management and vehicle charging systems. WeRide, which holds driveless vehicle operator permits in China, the US, the United Arab Emirates and France, is no stranger to self-driving vehicle operations in Singapore. Since April 2024, it has been running an autonomous shuttle bus service at integrated resort Resorts World Sentosa. Two of WeRide's driverless road sweepers have also been on trial on public roads in the Marina coastal area since October 2024. Handal Indah has some autonomous vehicle know-how, too, via company founder Lim Han Weng's other business, Yinson Holdings. In 2021, Yinson backed Singapore-based autonomous vehicle start-up MooVita, which today operates a driverless shuttle bus service at Ngee Ann Polytechnic – albeit with a safety driver on board. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
8 hours ago
- Straits Times
Malaysia to introduce revised sales tax, expand services tax from July 1
A sales tax rate of 5 to 10 per cent will be imposed on non-essential and luxury goods, while the services tax will be expanded to include several sectors. PHOTO: AFP KUALA LUMPUR - Malaysia will revise its sales tax rate and also widen the scope of its services tax from July 1, the finance ministry said on June 9, as the government looks to boost its revenue and strengthen its fiscal position. A sales tax rate of 5 to 10 per cent will be imposed on non-essential and luxury goods, such as king crab, salmon, imported fruits, racing bicycles, and antique artworks, the ministry said in a statement. The services tax will be expanded to include property rentals or leasing, construction, financial services, private healthcare, education and beauty services, it said. 'This measure aims to strengthen the country's fiscal position by increasing revenue and broadening the tax base to improve the quality of the social safety net without burdening a majority of the people,' the ministry said. Prime Minister Anwar Ibrahim had said during the government's budget announcement last October that the sales and services tax would be progressively expanded. The expansion of the tax was delayed from its initial implementation in May amid concerns from businesses. The Federation of Malaysian Manufacturers had in April urged the government to defer the expansion of the scope of the tax, in light of tariff and global trade uncertainties that it said could raise operating costs this year. The finance ministry said there will be selected exemptions for the tax to avoid double taxation and to ensure that Malaysian nationals were not taxed for certain essential services. Penalties against companies for non-compliance with the tax's legal requirements will not be imposed until December 31, the ministry added. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
17 hours ago
- Straits Times
CDL pops after selling South Beach stake to Malaysians; SIA Engineering hits five-year high
CDL's share price rose 8.5 per cent over the week to close at $5.25 on June 6. PHOTO: ST FILE SINGAPORE – City Developments Limited (CDL) popped last week, after it announced it will sell its 50.1 per cent stake in the South Beach mixed project to its Malaysian partner's IOI Properties Group for about $834.2 million. The transaction is expected to result in a gain on disposal of about $465 million for the financial year ending Dec 31, 2025, which will be used to reduce bank borrowings and lower its debt, CDL said on June 4. The company had said in 2024 that it aimed to divest $1 billion in assets, and has announced about $600 million in divestments so far. CDL's share price, which had declined following a public dispute between executive chairman Kwek Leng Beng and his son, chief executive Sherman Kwek, over control of the company's board, rose 8.5 per cent over the week to close at $5.25 on June 6. SIA Engineering hit a five-year high of $2.98 on June 6, outperforming its average target price of $2.71 as investors ploughed into the stock. The aircraft maintenance provider has been a favourite stock pick among analysts, who have begun identifying companies that could benefit from an expected capital infusion into local stocks before the end of the year. As part of an effort to revive the stock market, the Monetary Authority of Singapore will be allocating $5 billion in seed capital to Singapore-based funds for investing in local stocks, and expects to shortlist suitable investment strategies by end-September. Analysts reckon the funds will likely be deployed before the end of 2025. SIA Engineering rose 8.5 per cent through to the week, and closed on June 6 at $2.94. Great Eastern to address share trading suspension Great Eastern Holdings on June 6 finally announced that minority shareholders will be able to vote on the delisting of the insurance company or a resumption of trading, nine months after its shares were suspended from trading on the Singapore Exchange (SGX) due to an insufficient public float of less than 10 per cent. If shareholders vote in favour of delisting, major shareholder OCBC Bank will make a final exit offer of $30.15 per share, valuing the remaining 6.28 per cent it does not own at $900 million. This revised offer represents a 17.8 per cent premium over OCBC's initial offer of $25.60 per share in May 2024. Independent financial adviser (IFA) Ernst & Young has assessed the new offer as fair and reasonable, after previously finding the earlier offer unfair but reasonable. The delisting decision will be made solely by minority shareholders, as OCBC – which already owns 93.72 per cent – will abstain from voting. The proposal requires at least 75 per cent approval at the upcoming extraordinary general meeting. Of the 6.28 per cent of shares that OCBC currently does not own, two prominent shareholder families – the Lees and the Wongs – own a combined 3 per cent. In January, it was reported that OCBC CEO Helen Wong had met them to persuade them to accept the earlier offer, though those efforts were reportedly unsuccessful. The Lee family, which has ties to OCBC's founding, is expected by some to support the delisting. However, if the Wongs choose not to vote in favour, the resolution would require unanimous support from the Lees and the rest of the minority shareholders to pass. If the delisting vote fails, shareholders will then vote on whether to resume trading of Great Eastern's shares. This resolution also requires 75 per cent approval. OCBC will be able to vote on this resolution. Under the trading resumption plan, Great Eastern will carry out a one-for-one bonus issue, giving shareholders a choice of receiving either regular voting shares or Class C non-voting shares. OCBC has indicated that if the delisting does not go through, it will vote in favour of the trading resumption and choose to receive Class C shares, at Great Eastern's request. This move would reduce OCBC's voting stake from 93.72 per cent to 88.19 per cent, restoring the minimum public float required for trading to resume. OCBC has also stated that if the delisting fails and trading resumes, it has no intention of making another offer for the remaining shares. Some analysts view the revised offer positively, noting that it is now considered fair, is in line with peer valuation multiples and offers a 17.8 per cent premium over the earlier bid. However, they also caution that if trading resumes, liquidity in Great Eastern shares is likely to be limited due to OCBC's more concentrated shareholding in the company. Other market movers Units of Keppel DC Real Estate Investment Trust (Reit) rose 2.3 per cent to $2.24 on June 6, after it was announced that the Reit will replace Hong Kong-based conglomerate Jardine Cycle & Carriage on the Straits Times Index (STI), following a quarterly review. The move, which will take effect on June 23, increases the total number of Singapore Reits on the index to eight, and is expected to increase their combined weight in the index to more than 10 per cent. Internet service provider NetLink NBN Trust will replace Keppel DC Reit on the STI's reserve list. The other four companies on the reserve list are CapitaLand Ascott Trust, ComfortDelGro, Keppel Reit and Suntec Reit. Oiltek International, a provider of vegetable oil processing technology, jumped by more than 9 per cent to 60.5 cents on June 6, when it successfully transferred its listing from the Catalist to the SGX mainboard. The company first listed in March 2022 at 23 cents per share. CEO Henry Yong said the move will enable Oiltek to gain greater visibility, liquidity and access to capital. Oiltek International jumped by more than 9 per cent to 61 cents on June 6, when it successfully transferred its listing from Catalist to the SGX mainboard. PHOTO: OILTEK Ms Lee Khai Yinn, a partner at SAC Capital, which was Oiltek's former sponsor, said the company's move to the mainboard is an example of how the Catalist can serve as a platform for emerging firms to scale and succeed. Shares of Singapore Paincare Holdings rallied last week after the Securities Investors Association (Singapore), or Sias, noted that a privatisation offer of 16 cents on May 27 undervalues the stock. Sias noted that Singapore Paincare was listed at 22 cents per share at a premium to its unaudited net asset value per share in July 2020 during Covid-19, when valuations were depressed and the STI was trading at around 2,500. It pointed out that the company should now be valued at a similar premium, at around 36 cents to 37 cents, given that the STI is trading at around 3,900, and 'well-managed healthcare companies generally trade at premiums to their net asset value'. In any case, minority shareholders of Singapore Paincare should wait for a report to be released by an appointed IFA before selling their shares on the open market, said Sias. Shareholders who do sell on the open market will not have recourse if the privatisation offer price is subsequently revised upwards, Sias added. It also reminded shareholders that 'for a delisting to take place, the IFA has to conclude that the offer is both fair and reasonable'. The Catalist-listed counter closed on June 6 at 17.4 cents, up 11.5 per cent through the week. What to look out for this week All eyes will be on US consumer price index data for the month of May, which will be released on June 11. US consumers probably saw slightly faster inflation in May, notably for merchandise, as companies gradually pass along higher import duties, Bloomberg quoted analysts as saying. Despite US President Donald Trump's efforts to pressure the Federal Reserve into quickly lowering interest rates, Fed chairman Jerome Powell has indicated they have time to assess the impact of trade policy on the economy, inflation and jobs market. Join ST's Telegram channel and get the latest breaking news delivered to you.
