Parkway Life Reit Divest Malaysian Property Rm2009 Mil
Parkway Life REIT, a real estate investment trust, has announced that its wholly-owned subsidiary in Malaysia, Parkway Life Malaysia, has recently entered into an agreement to sell some of its assets.
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According to the agreement, the subsidiary will be divesting strata units and lots at MOB Specialist Clinics in Kuala Lumpur for RM20.09 million ($6.09 million). This property, which has a freehold land tenure and spans 2,444 sqm, consists of three ground-floor units, three medical-consulting suite units, and car-park lots.
Upon completion of the sale, the REIT is expected to record a gain of approximately $100,000 from the disposal of its investment. Currently, this property is Parkway Life Malaysia’s only asset and contributes 0.2% to its asset value. Once the divestment is finalized, Parkway Life REIT will no longer have any investments in Malaysia.
The sale price of the property is about 25.6% higher than the initial purchase price of RM16 million in 2012. It is also 4.6% higher than the average of the latest valuation of the property at RM19.2 million as of December 31, 2024.
Parkway Life REIT has stated that this divestment is part of its manager’s asset recycling strategy, which aims to improve the overall quality and growth potential of its portfolio.