Shinsei to Delay Health-Care REIT Listing on Bubble Concerns

Shinsei Bank Ltd. said it will postpone its plan to list a health-care real estate investment trust because competition among buyers is making it expensive to acquire assets.

The bank and its partners plan to list the REIT in 2015 instead of this year, said Takashi Fujimura, chief executive officer and president of Japan Senior Living Partners Inc., an asset manager set up by Shinsei, Kenedix Inc. and other partners. The bank plans to list the REIT with 50 billion yen ($437 million) and eventually double the size to 100 billion yen, he said.

“The health-care market in Japan has become bubble-like,” said Fujimura in an interview on Nov. 4. “The prices are being pushed up so fast that some buyers don’t know what the right price is anymore.”

The prices for senior homes and hospitals have gained about 20 percent over the past three years, said Fujimura.

Nippon Healthcare Investment Corp., a REIT with 14 senior homes, surged 48 percent on its trading debut yesterday.

One in every four people in Japan will be older than 65 years in 2014, according to data compiled by Bloomberg. That ratio will increase to 40 percent by 2060, according to an estimate by the Ministry of Internal Affairs and Communications.

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