Parkway Trust Management, the manager of Parkway Life Real Estate Investment Trust (PLife Reit), is divesting seven nursing homes in Japan from its portfolio for 7.95 billion yen (S$88.3 million).

PLife Reit is selling the seven properties, located in Tokyo, Osaka, Kanagawa and Fukuoka, to a special purpose vehicle of global investment firm Fortress Japan Investment Holdings.

The deal, the trust's maiden divestment, has been completed, with the payment made in cash yesterday after relevant adjustments were made for security deposits and allocations of taxes, expenses and revenues.

PLife Reit had originally purchased the seven nursing homes for about $68.9 million and their net book value as at Dec 31 last year was about $75.7 million.

The sale price is 8.3 per cent above the latest valuation, 16.1 per cent above the net book value and 28.1 per cent above the original purchase price of the properties.

PLife Reit is expected to recognise an estimated divestment gain of about $12.3 million over the net book value.

The proceeds received from the divestment will further strengthen PLife Reit's balance sheet and provide greater financial flexibility to seize other attractive investment opportunities offering better value, the trust manager said.