Sankei Real Estate adds JPY 4.2bn Tokyo office to its portfolio and other APAC REIT news

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Japan’s Sankei Real Estate Inc. has purchased a Tokyo office building from its sponsor, Sankei Building Co., at an acquisition price of JPY 4.2bn. 

The company said the S-Gate Akasaka building was the first of the ‘S-Gate’ series and was fully occupied with 1,984 sq.m. of lettable area. 

The deal will grow the REIT’s total assets to JPY 71.5bn and add to its office portfolio, which includes the JPY 14bn Breeze Tower in Osaka and the JPY 10bn Shinagawa Seaside TS Tower in Tokyo. 

“The office building ratio will increase to 81.9%, the Tokyo area ratio will increase to 76.1%, the average building age will decrease to 16.1 years, so the quality of the portfolio will be improved,” the company said.

The REIT’s shares finished trading 1.30% lower at JPY 90,900 on Monday.

Index Change Value at close
S&P/ASX 200 A-REIT -0.60% 1,282.50
S&P/ASX 200 +0.33% 5,944.80
FTSE ST REITS +0.91% 848.01
STI +0.06% 2,511.21
Tokyo Stock Exchange REIT -1.69% 1,708.89
Nikkei 225 -0.50% 23,089.95
Hang Seng REIT +0.52% 5,606.47
Hang Seng -0.43% 24,589.65

Singapore: Parkway Life REIT shares jump on index inclusion

Shares in Singapore-listed Parkway Life REIT jumped on Monday after the company announced it was joining the FTSE EPRA NAREIT Global Developed index late last week. 

“Inclusion in the index will enhance trading liquidity and visibility to investors and index funds worldwide, reaffirming our strong position as one of the largest listed healthcare REITs in Asia,” said Yong Yean Chau, CEO of the REIT’s manager.

The REIT, which will join the index from September 18, invests primarily in healthcare and healthcare-related real estate, with a portfolio of 53 properties worth about S$1.96bn, as of end-June 2020. 

Parkway Life owns private hospitals in Singapore such as Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital, as well as properties in Japan and Malaysia.

Parkway Life REIT shares closed 5.2% higher to S$4.05 on Monday. 

Australia: Mirvac loses two executives, restructures business

ASX-listed Mirvac Group’s CFO Shane Gannon and head of retail Susan MacDonald are resigning, with both executives planning to step away from the group towards the end of 2020. 

Mirvac has started a recruitment process for the CFO role that will include internal and external candidates, with the group looking to fill the role by the end of the year. 

The departures come as the company combines its office, industrial, retail, and build-to-rent operational businesses into a single unit led by Campbell Hanan.

“We are unlocking synergies in our commercial portfolio while also significantly enhancing our mixed-use  asset creation capabilities,” said Mirvac CEO and managing director Susan Lloyd-Hurwitz.

Mirvac shares closed 0.95% lower at A$2.09 on Monday.