Mapletree Industrial Trust proposes to acquire Tokyo freehold mixed-use property for JPY14.5 bil
Developed in October 1992, the property remains on freehold land measuring approximately 91,200 sq ft. The real estate has a gross floor surface location of around 319,300 sq ft.
According to MINT, the real estate is in an important place, which offers a future redevelopment opportunity that produces added value.
The estate is presently fully rented to a Japanese corporation and has a weighted common lease to expiry (WALE) of five years. The present rent is a traditional regular one where the renter has the selection to extend its contract.
Following the proposed procurement, MINT is going to have 65.9% of freehold real properties in its portfolio, up from the proportion of 65.8% as at June 30. Its profile will certainly expand to $9.1 billion by assets under management (AUM) up from $9.0 billion as at the same duration.
On top of that, the recommended purchase catches options in Japan, that has over 5,000 megawatts of total IT supply and is Asia-Pacific’s (APAC) third-largest data facility market.
Mapletree Industrial Trust (MINT) is proposing to obtain a multi-storey mixed-use center in Tokyo, Japan for JPY14.5 billion ($129.8 million).
“End-users and data centre operators have broadened into new information hub clusters across Greater Tokyo in view of the constraints of land and power and the demand for better redundancy. These resulted in West Tokyo coming to be a bigger submarket, which represented around 40% of overall online IT supply in Greater Tokyo market,” the REIT supervisor discusses in its Sept 30 news.
On a historical pro forma basis, the suggested acquisition and its recommended strategy of financing will be accretive to MINT’s distribution per unit (DPU). The supervisor means to finance the complete price with Japanese yen (JPY)-denominated borrowings to “provide an all-natural resources hedge”. MINT’s accumulation leverage proportion is anticipated to increase to 39.8% from 39.1% as at June 30.
With solid interest and restricted supply growth, the information centre space is assumed to grow at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2033, states MINT’s supervisor pertaining to data from DC Byte’s Japan information centre market record for this year. The same report notes that the openings rate is anticipated to tighten to 6% by 2033, from 9% in 2023 and 23% in 2018.
It will likewise improve 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.
The establishment includes a data hub, back workplace, training establishments and a surrounding accommodation wing that has the plausible to get redeveloped right into a multi-storey data centre.
The consideration exemplifies a discount of some 3.3% to the real estate’s evaluation of JPY15.0 billion. The property was alone valued by JLL Morii Valuation & Advisory K.K.
The recommended procurement is secured under the conditional trust beneficiary interest rate purchase and share agreement with Nagayama Tokutei Mokuteki Kaisha, an unassociated third-party vendor. Under the framework, MINT will have an effective economic interest of 98.47% in the real estate with a purchase investment of JPY14.9 billion. The balance of the acquisition factor will be funded by MINT’s supporter, Mapletree Investments.
The suggested purchase is assumed to occur by the 4th quarter of 2024.
