Friday 29 Mar 2024
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KUALA LUMPUR (Mar 16): IHH Healthcare Bhd said it has entered into a partnership agreement with Godo Kaisha Samurai 10 that saw an injection of RM182.62 million into the latter for the acquisition of nursing homes in Japan.

A silent partnership agreement was entered into today, between Godo Kaisha Samurai 10 and Parkway Life Japan4 Pte Ltd — a special purpose vehicle of Parkway Life Real Estate Investment Trust (REIT).

Parkway Life REIT is an indirect 35.76%-owned subsidiary of IHH Healthcare.  

Pursuant to a Tokumei Kumiai agreement (or silent partnership agreement), Parkway Life Japan4 Pte Ltd has injected ¥5.98 billion (approximately RM182.6 million) into Godo Kaisha in relation to the acquisition of four nursing homes and one group home in Fukuoka City, Nagoya City and Sapporo City.

The acquisitions are expected to complete in the first quarter of 2015.

In total, the five properties have 471 rooms.

Following the acquisition, IHH Healthcare (fundamental score: 1.65; valuation score: 0.70) said Godo Kaisha would become its subsidiary under the silent partnership agreement.

IHH Healthcare said the exercise would result in the group receiving the majority of the benefits relating to the Godo Kaisha operations and net assets, being exposed to the majority of the risks incident to its activities and retaining the majority of the residual or ownership risks related to their assets.

“Consequently, the operator is regarded as subsidiary of the group according to MFRS 10: consolidated financial statements,” it added.

Godo Kaisha is involved in investment/divestment, management and holding of real estate and real estate interest and other related real estate activities.

“The change in group composition is not expected to have any material effect on the earnings per share, net assets or share capital of the company and group for the financial year ending Dec 31, 2015.”

In July 2013, Parkway Life REIT acquired two nursing homes in Japan at a combined purchase price of about S$23.1 million.

In September 2013, Parkway Life REIT acquired another five nursing homes in Toba, Niihama, Kitakyushu and Nigata at a combined purchase price of about S$59.2 million, according to IHH Healthcare’s annual report 2013.

Shares of IHH Healthcare rose 0.55% or 3 sen to close at RM5.45 today, giving it a market capitalisation of RM44.57 billion.

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