Mapletree Industrial Trust proposes to acquire Tokyo freehold mixed-use property for JPY14.5 bil
Complying with the recommended acquisition, MINT is going to have 65.9% of freehold real estates in its portfolio, up from the percentage of 65.8% as at June 30. Its portfolio will certainly grow to $9.1 billion by assets under management (AUM) up from $9.0 billion as at the same duration.
According to MINT, the real estate remains in an important place, which presents a future redevelopment chance that develops added worth.
Mapletree Industrial Trust (MINT) is recommending to acquire a multi-storey mixed-use facility in Tokyo, Japan for JPY14.5 billion ($129.8 million).
It will certainly additionally boost MINT’s geographical diversity with its Japan portfolio up by 1.3 percent points to 6.4% from 5.1% as at June 30. MINT’s Singaporean and North American properties will certainly represent 47.3% and 46.3% specifically.
“End-users and data centre operators have actually expanded into new information hub collections throughout Greater Tokyo because the restrictions of land and power and the requirement for greater redundancy. These resulted in West Tokyo becoming a larger submarket, that made up around 40% of overall online IT supply in Greater Tokyo market,” the REIT manager explains in its Sept 30 news.
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 framework, MINT is going to have a reliable financial interest of 98.47% in the real estate with an acquisition outlay of JPY14.9 billion. The balance of the purchase consideration will certainly be funded by MINT’s sponsor, Mapletree Investments.
In addition, the recommended purchase captures chances in Japan, which has over 5,000 megawatts of whole IT supply and is Asia-Pacific’s (APAC) third-largest data facility market.
With strong need and restricted supply growth, the data centre area is anticipated to expand at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2033, says MINT’s supervisor referring to stats from DC Byte’s Japan data centre market record for this year. The similar report notes that the openings rate is expected to tighten up to 6% by 2033, from 9% in 2023 and 23% in 2018.
The factor stands for a price cut of some 3.3% to the real estate’s appraisal of JPY15.0 billion. The property was on their own valued by JLL Morii Valuation & Advisory K.K.
Developed in October 1992, the building sits on freehold land determining approximately 91,200 sq ft. The real estate has a gross floor surface area of around 319,300 sq ft.
On a historical pro forma basis, the proposed acquisition and its proposed method of financing will be accretive to MINT’s distribution per unit (DPU). The manager intends to finance the overall cost via Japanese yen (JPY)-denominated borrowings to “provide a natural resources hedge”. MINT’s aggregate leverage proportion is expected to increase to 39.8% from 39.1% as at June 30.
The recommended purchase is expected to occur by the fourth quarter of 2024.
The center consists of an information hub, back office space, training establishments and a surrounding hotel wing that has the plausible for being redeveloped right into a multi-storey data centre.
The property is currently fully contracted to a Japanese conglomerate and has a weighted standard lease to expiry (WALE) of 5 years. The existing lease is a classic ordinary one where the lessee has the choice to continue its contract.
