Mapletree Industrial Trust proposes to acquire Tokyo freehold mixed-use property for JPY14.5 bil

Built in October 1992, the structure rests on freehold land measuring roughly 91,200 sq ft. The real estate has a gross floor surface area of around 319,300 sq ft.

Following the suggested purchase, MINT is going to have 65.9% of freehold real estates in its portfolio, up from the proportion of 65.8% as at June 30. Its profile will develop to $9.1 billion by assets under management (AUM) up from $9.0 billion as at the very same duration.

Mapletree Industrial Trust (MINT) is suggesting to get a multi-storey mixed-use facility in Tokyo, Japan for JPY14.5 billion ($129.8 million).

The property is presently fully rented to a Japanese conglomerate and has a weighted average lease to expiration (WALE) of five years. The current contract is a traditional ordinary one where the lessee has the selection to extend its lease.

The recommended acquisition is made under the conditional trust beneficiary interest purchase and share arrangement with Nagayama Tokutei Mokuteki Kaisha, an unrelated third-party vendor. Under the structure, MINT will have a reliable financial rate of interest of 98.47% in the property with a purchase outlay of JPY14.9 billion. The balance of the purchase factor will certainly be budgeted by MINT’s sponsor, Mapletree Investments.

Meyer Blue condo showflat

It will certainly also boost MINT’s geographical diversity with its Japan portfolio up by 1.3 percentage points to 6.4% from 5.1% as at June 30. MINT’s Singaporean and North American properties will represent 47.3% and 46.3% specifically.

The establishment features an information hub, back office, training facilities and a nearby hotel wing that has the prospective to get redeveloped into a multi-storey data facility.

According to MINT, the property is in an important site, which offers a future redevelopment chance that produces added worth.

The consideration exemplifies a discount of some 3.3% to the real estate’s appraisal of JPY15.0 billion. The real estate was independently valued by JLL Morii Valuation & Advisory K.K.

On top of that, the recommended procurement captures chances in Japan, which has more than 5,000 megawatts of whole IT supply and is Asia-Pacific’s (APAC) third-largest data centre market.

The recommended purchase is expected to happen by the 4th quarter of 2024.

“End-users and information centre operators have broadened into new information centre clusters across Greater Tokyo because the restraints of land and power and the need for higher redundancy. These caused West Tokyo becoming a bigger submarket, that accounted for about 40% of overall real-time IT supply in Greater Tokyo market,” the REIT manager discusses in its Sept 30 announcement.

With strong interest and minimal supply growth, the data centre space is assumed to grow at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2033, says MINT’s manager pertaining to data from DC Byte’s Japan information centre market record for this year. The same report notes that the job price is expected to tighten to 6% by 2033, from 9% in 2023 and 23% in 2018.

On a historical pro forma basis, the proposed acquisition and its suggested approach of financing are going to be accretive to MINT’s distribution per unit (DPU). The manager intends to fund the total price with Japanese yen (JPY)-denominated credits to “offer an all-natural capital hedge”. MINT’s accumulation leverage proportion is expected to increase to 39.8% from 39.1% as at June 30.


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