In 2021, Parkway Life REIT and sponsor IHH announced a new 20-year lease for the three hospitals — Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital — with a 20-year master lease agreement and the option to extend for 10 years. The rent uplift comes with rent rebates with a full rent uplift in FY2026.
During a recent conversation with Yong Yean Chau, CEO of Parkway Life REIT’s manager, following the announcement of the REIT’s acquisition of 11 nursing homes in France for EUR111.9 million ($160.2 million), Yong was quick to emphasise that Singapore will always remain core to the portfolio and that the acquisition is likely to be more accretive than the 1.6% stated in the initial announcement.
”Singapore will remain the core and more than 60% of the portfolio because this forms the backbone of Parkway Life REIT. By 2026, the rental income will increase, and the assets will be revalued upwards with income and asset size growth. I think it is important to reassure and inform investors of this just in case investors are worried that our big move into Europe and Europe plus Japan will become bigger than Singapore,” Yong says, referring to the new master lease agreement that boosts income and valuation of the portfolio.
