Parkway Life REIT Announces New S\$887 Million Facility Agreement with Potential Triggers for Mandatory Prepayment

Key Highlights

• New Facility Agreement Signed: Parkway Life Real Estate Investment Trust (Parkway Life REIT), through its trustee HSBC Institutional Trust Services (Singapore) Limited, has entered into a new facility agreement on 20 February 2026.
• Refinancing Existing Borrowings: The proceeds from this facility will be used to refinance Parkway Life REIT’s existing bank borrowings.
• Facility Size: The total value of facilities potentially affected by certain trigger events is approximately S\$887.0 million (excluding interest, fees, and undrawn facilities).

Important Details and Potentially Price-Sensitive Information

• Mandatory Prepayment Triggers (“Specified Conditions”):
  • Change of REIT Manager: If Parkway Trust Management Limited (PTML), the manager of Parkway Life REIT, resigns or is removed and the lender does not agree otherwise, Parkway Life REIT must prepay all outstanding amounts under the facility within 30 days.
  • Change in Shareholding of Manager: If Parkway Holdings Limited ceases to own at least 51% of PTML (directly or indirectly), and if revised terms for the facility cannot be agreed upon within a 60-day negotiation period, mandatory prepayment is required within 30 days, unless the lender agrees otherwise.
• Potential Impact on Shareholders:
  • These prepayment requirements are material triggers that could require Parkway Life REIT to repay up to S\$887.0 million in outstanding facilities on short notice if the specified conditions occur.
  • Any forced prepayment could affect Parkway Life REIT’s liquidity, refinancing strategy, and financial stability. These, in turn, could have a significant impact on future distributions and the market value of the REIT.
  • As of the date of the announcement, no such prepayment has been triggered.

Investor Considerations

• Material Risk Disclosure: Shareholders should closely monitor any changes in the management of PTML or its shareholding structure as these events may force Parkway Life REIT into early repayment of substantial borrowings.
• Potential Market Impact: Should any of these triggers occur, it could affect the REIT’s financial position and might have a material impact on the share price.
• Current Status: There is no indication that any of these triggers are imminent, but the size and terms of the facility are significant enough that investors should remain vigilant.

Additional Notes

• Units Not Guaranteed: The Units are not obligations of, deposits in, or guaranteed by Parkway Trust Management Limited or any of its affiliates.
• Units Listed on SGX-ST: Investors can only deal in their Units through trading on the Singapore Exchange Securities Trading Limited (SGX-ST). Listing does not guarantee a liquid market for the Units.
• Investment Risk: The value of the Units may rise or fall, and there is no guarantee of returns. Past performance is not indicative of future results.

Disclaimer

This article is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. Investors should conduct their own due diligence and consult their financial advisor before making investment decisions. The information herein is based on an official company announcement and is subject to change without notice.

View ParkwayLife Reit Historical chart here