SPH acquires five aged care assets in Japan for JPY5.26 bil

By Valerie Kor / EdgeProp Singapore | February 25, 2020 5:00 PM SGT
sph acquires aged care assets in japan
SPH’s joint-venture fund will generate asset management fees from senior housing, nursing homes and medical office buildings in Japan. (Picture: SPH)
SINGAPORE (EDGEPROP) - Singapore Press Holdings (SPH) has announced the acquisition of five aged care assets in Hokkaido, Nara and Tokyo.
The sale and purchase agreements were done through Straits Himawari TMK One TMK and Straits Himawari TMK Two TMK. The assets amount to JPY5.26 billion ($65.8 million).
The deal was made as part of SPH’s partnership with Japanese real estate asset manager Bridge C Capital in October 2019 to establish a fund focused on aged care and healthcare assets. The fund will generate recurring income from asset management fees of senior housing, nursing homes and medical office buildings in Japan.
SPH first implemented this strategy on home ground in 2017 when it acquired Invest Healthcare, previously Orange Valley Healthcare, for $164 million. Its subsidiary Orange Valley Nursing Homes operates six nursing homes in Singapore and is planning to expand further.
In Japan, the aged care sector looks set to grow against the backdrop of a fast-ageing population, where the elderly demographic aged 65 and above is expected to rise to 30% by 2025. The aged care sector in Japan is estimated to be worth JPY15 trillion by then.
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