Parkway Life REIT (aka Plife Reit)

[greengiraffe]

Healthscope set for $1.1bn property spin-off
• BRIDGET CARTER
• THE AUSTRALIAN
• FEBRUARY 12, 2014 12:00AM
•
WITH Macquarie and UBS shaping up to be the advisers to lead the way on a potential $4 billion IPO of Healthscope, sources are saying a $1.1 billion spin-off of the company's properties is looking increasingly like a sure bet.
Australian listed healthcare property owners Generation Healthcare and Morgan Stanley's Arena are likely to be approached as potential buyers, along with Singapore's Parkway Life REIT, the state's largest public healthcare property group.
Heathscope has 44 hospitals, and a property sale has previously been flagged as an option, along with a trade sale of the entire business.
Investment bank Macquarie has previously made attempts to drum up interest.
Macquarie and UBS are expected to be named as advisers for a potential IPO of the Healthscope operating business, while Goldman Sachs is expected to join Merrill Lynch and Credit Suisse as co-lead manager, as revealed by The Australian online earlier this week.
Morgan Stanley, CIMB and Deutsche are also competing for a role, but JPMorgan is not in the mix.
The company was delisted in 2010 through a $2.7bn takeover bid by its private equity group owners Carlyle and TPG Capital.
It has an enterprise value of at least $5bn and is expected to return to the public arena this year.

[greengiraffe]

Singapore Listed Parkway Life Reit was previously mentioned as an interested party to the potential sale...

Healthscope hospitals up for sale in $1bn operation
• BRIDGET CARTER
• THE AUSTRALIAN
• FEBRUARY 20, 2014 12:00AM
HEALTHSCOPE’S $1 billion-plus property portfolio will be offered to buyers in two separate parcels of similar value, with major pension funds likely to circle the private hospitals, according to market sources.
The portfolios are expected to attract buyers looking for safe investments with stable long-term leases. Healthscope’s private equity owners, Carlyle and TPG Capital, which are being advised on the portfolio by UBS, could reap $1.25bn from the sale, sources said. However, analysts believe some smaller Australian groups that would be unable to swallow the entire hospital portfolio, suggesting such a price tag was overly optimistic.
On offer, according to sources, are 28 of Healthscope’s 44 properties, with 20-year leases and annual rental increases pegged to the inflation rate.
Bidders can purchase either one or both of the portfolios of 14 properties, worth about $600 million each.
Two of the most valuable in the portfolio are thought to be Nepean Private Hospital in Penrith, NSW, and Sydney Southwest Private Hospital. Some question whether the portfolio’s
returns would be high enough to attract one of the dominant global private equity groups like Blackstone, which has previously flagged interest in real estate assets linked to healthcare, saying the portfolio would be more suited to superannuation funds.
A sale of Healthscope’s real estate portfolio is being considered as advisers weigh up overall options for the $5bn hospital provider.
Sources said a float on the Australian Securities Exchange was the most likely path, with the property assets possibly sold separately.
A trade sale was a secondary option.
Healthscope’s operating business, being dubbed “op-co”, could also appeal to a private equity buyer, while the property business, “pro-co”, could be offloaded to both pension funds or other retirement property owners like the locally listed Generation Healthcare REIT.
It is understood that smaller listed real estate groups such as Folkestone and Morgan Stanley’s Arena Investment Management could be interested in some of the properties, depending on price.
UBS is advising on the real estate options for Healthscope, and also on the overall options for the business with Macquarie Group.
Merrill Lynch, Goldman Sachs and Credit Suisse have been appointed as co-lead managers.
Carlyle and TPG declined to comment yesterday.

[greengiraffe]

IHH out for the entire Healthscope but PLife may still be in parts of it...

Listed heavyweights join Healthscope race
Nick Lenaghan
558 words
3 Apr 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Australia's biggest listed property fund managers – Lend Lease, GPT, and Charter Hall – have joined the race with offshore buyers for the $1.2 billion Healthscope hospital portfolio.

Bids are expected to come in by ­mid-April under a process being run by UBS.

The property sale is running ­alongside a larger effort, managed by UBS and Macquarie Capital, to ­enable Healthscope's private-­equity owners TPG and The ­Carlyle Group to exit their ­investment through a trade sale or $4 billion float.

Interest in the property portfolio is also expected from giant US healthcare property trusts HCP, Ventas and Healthcare REIT.

Also likely to make a play is one of Asia's largest listed healthcare property trusts, Parkway Life REIT.

One of Parkway's main investors is IHH Healthcare, a global private health giant.

The property process is focused on a sale into an unlisted fund or an existing healthcare property trust, rather than on a separate real estate float.

Of Healthscope's 44 hospitals, 11 are held on leasehold and ­cannot be included in a direct ­property transaction.

The portfolio varies in quality, but includes prize assets such as Sydney's Norwest private hospital and the Knox private hospital in Melbourne.

A key element to the property sale is the ­potential – if it stacks up – to split the portfolio in two.

As a result, smaller players, such as Australia's only listed healthcare property trust Generation Healthcare REIT, are also showing interest.

Another smaller candidate is the New Zealand-listed Vital Healthcare Property Trust, which already owns a group of Australian facilities.

The smaller players will be hoping their specialist asset management skills give them an edge as in a sector where property – and its development – forms an integral part of healthcare operations.

Rental return of about $80m

However, the larger players – Lend Lease, GPT, and Charter Hall – have shown themselves to be adept at sourcing institutional capital for platform or partnership arrangements.

All three have powerful ambitions to increase funds under management.

Indeed, GPT's chief Michael ­Cameron is explicitly targeting a boost in funds under management to $10 billion.

A potential rental return of about $80 million has been attributed the Healthscope portfolio. Depending on the cap rate, the portfolio could be worth about $1.2 billion. It is expected that bids will fall between a 6.5 per cent to 7.5 per cent yield range.

There are few comparable cap rates to use as guides in the bidding process. Generation Healthcare's $230 million portfolio delivers an 8.5 per cent cap rate. But the stock has implied cap rate of 6.2 per cent because it is trading at a premium.

It is by no means certain Healthscope's property portfolio will be sold separately. That depends on the bids.

A property spin-off would lower the overall IPO or Healthscope sale target. But it would also remove valuable real estate that can be borrowed against and it could make the Healthscope less attractive in comparison with industry rival Ramsay Health Care, which holds hospitals on its balance sheet.

Key points Lend Lease, GPT and Charter Hall jostle with offshore buyers for $1.2bn hospital portfolio. Bids expected to fall between 6.5pc to 7,5pc yield range, with rental return about $80m.


Fairfax Media Management Pty Limited

Document AFNR000020140402ea430000d

[greengiraffe]

Five in hunt for Healthscope

BRIDGET CARTER
340 words
24 Apr 2014
The Australian
AUSTLN
English
© 2014 News Limited. All rights reserved.

The field competing to buy Healthscope’s $1 billion-plus property portfolio has narrowed to five contenders.

Lend Lease, GPT Group, Parkway and the US-based Ventas REIT, along with a fifth group, are understood to be on the shortlist.

Charter Hall, Dexus and Arena Asset Management, which had showed interest, were out of the contest, sources said.

It is believed that offers for the portfolio had come in at about $1.2bn, representing a yield of about 7 per cent and slightly below the $1.25bn asking price.

But sources have suggested evidence was mounting that the portfolio was more likely to be sold as part of the overall hospital business via a trade sale or initial public offering worth an estimated $4bn.

Lend Lease and GPT Group surprised the market with their interest in the real estate portfolio during the past month.

Should GPT eventuate as the buyer of Healthscope’s real estate, the company would no longer be a listed developer and landlord of only shopping centres, ­offices and logistics properties. GPT offloaded its offshore ­assets and hotel portfolio, including Ayers Rock Resort, during the global financial crisis.

A purchase of the Healthscope properties would help chief executive Michael Cameron in achieving the target to increase the company’s $7.1bn funds management platform by $10bn. Among candidates to swallow all of Healthscope, which has a $5bn enterprise value, are Malaysian healthcare giant IHH, US-based HCA Holdings and Chinese conglomerate Fosun.

It is thought IHH would look to tip the property interests into Malaysia’s Parkway Life REIT, of which it owns 36 per cent.

UBS and Macquarie Group, which are handling the property portfolio, are said to have fielded strong interest for the 28 hospital sites in Australia, as groups look to cash in on the booming demand for healthcare assets because of the ageing population.Healthscope, one of the nation’s largest hospital operators, is owned by private equity firms TPG Capital and the Carlyle Group.


News Ltd.

[greengiraffe]

TOPLINE
How Abenomics gave Parkway Life Reit a boost

It indirectly drove up nursing home demand, even as it caused the yen to slide, says CEO Yong Yean Chau.

By
Lee Meixianleemx@sph.com.sg@LeeMeixianBT
BT_20141020_LMXPARKWAY_1327196.jpg Mr Yong - saying 'we are probably the most kiasu Reit in Singapore' - rejected 10 deals 'because of some financial engineering or fanciful structuring in the leases'. PHOTO: YEN MENG JIIN
20 Oct5:50 AM

ABENOMICS has given a fillip to Parkway Life Reit - which has 42 nursing homes in Japan - in more ways than one, according to the CEO of the real estate investment trust manager, Yong Yean Chau.

For instance, one of the three "arrows" proposed by Japanese Prime Minister Shinzo Abe in his

[greentea]

http://businesstimes.com.sg/companies-ma...r-795b-yen

Parkway Life Reit sells seven Japan nursing homes for 7.95b yen
By Cai Haoxiang haoxiang@sph.com.sg @HaoxiangCaiBT
26 Dec 6:36 PM
PARKWAY Life Reit, which owns Singapore's Mount Elizabeth Hospital, has divested seven nursing homes in Japan for 7.95 billion yen (S$87.3 million)...

[butcher]

Good move. Rebalancing its portfolio. Cheers.

[zerobeta]

hi, i just have a question... I noticed that for Parkway REIT they don't fully own some of their properties, for example for Mount Elizabeth Hospital they only own 56.71%... is this common for REITs in Singapore? does this mean their asset is inflated because the item "investment properties" in their asset assumed 100% ownership? if yes, then their gearing would have been under estimated...

[lonewolf]

I dun think its very uncommon.

Suntec and Keppel REIT owns part of MBFC. CMT/CCT are part owners of Gateway with Capitaland. There are the examples I can think of at the top of my head. I'm sure there's more.

Whether this means their assets is inflated and the impact on gearing, I am not too sure.

[marandaz]

Could you provide some evidence or statements that you think they are stating it as 100%?

What I know of (I may be wrong) is that REITs will usually state the strata title they hold....

Perhaps you are referring to the ownership of the holding subsidiary of that property?