Business Times: Thu, Aug 23
THE right of first refusal granted by sponsor Parkway Holdings over the sale of healthcare assets expired yesterday and will not be extended, said Parkway Life Real Estate Investment Trust's manager in a release to the Singapore Exchange.
According to Parkway Life Reit's prospectus, an agreement was entered into on July 17, 2007, which gave Parkway Life Reit the right of first refusal, subject to certain conditions, over sales of healthcare assets in the Asia Pacific region. The right of first refusal was said to give the Reit a "pipeline of potential future acquisitions" which in turn, could enhance the Reit's growth potential.
Pointing to the potential conflict of interest which could occur due to the expiry of the agreement, manager Parkway Trust Management said: "In addition to the existing internal control system in dealings with conflicts of interest, the Audit Committee will, during the course of its review of transactions to be entered into by Parkway Life Reit in the future, take into account the expiry of the right of first refusal together with any other relevant factors ... and arrive at its view based on all relevant factors."
It added that the existing system of internal controls will be assessed and enhanced periodically to ensure its effectiveness.
The announcement also pointed out that the interests of Parkway - which held a 35.77 per cent stake in Parkway Life Reit as at August 16 - continue to be aligned with that of the Reit.
Parkway Trust Management went on to highlight that to comply with the relevant rules, nominee directors appointed to the board by Parkway Holdings and/or its subsidiaries will not vote when it comes to transactions involving the sponsor and its related companies, nor when it involves transactions where they have a material interest.
One of Asia's largest listed healthcare Reits, Parkway Life Reit invests in income-producing real estate assets that are used largely for healthcare and healthcare-related purposes. As at June 30, it owned a portfolio of 36 properties valued at some $1.4 billion.
Shares in Parkway Life Reit closed at $1.97 yesterday, down half a cent.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)
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