Mapletree Industrial Trust proposes to acquire Tokyo freehold mixed-use property for JPY14.5 bil
On a historic pro forma basis, the suggested procurement and its proposed method of financing will be accretive to MINT’s distribution per unit (DPU). The supervisor plans to finance the overall cost with Japanese yen (JPY)-denominated credits to “offer an all-natural funding hedge”. MINT’s aggregate leverage proportion is expected to boost to 39.8% from 39.1% as at June 30.
The consideration represents a price cut of some 3.3% to the property’s appraisal of JPY15.0 billion. The real estate was on their own valued by JLL Morii Valuation & Advisory K.K.
Built in October 1992, the structure remains on freehold land evaluating around 91,200 sq ft. The real estate has a gross floor surface location of around 319,300 sq ft.
Adhering to the recommended acquisition, MINT is going to have 65.9% of freehold properties 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.
The proposed acquisition is expected to happen by the 4th quarter of 2024.
On top of that, the proposed acquisition catches chances in Japan, that has over 5,000 megawatts of whole IT supply and is Asia-Pacific’s (APAC) third-largest information centre market.
With strong demand and restricted supply development, the data centre space is expected to expand at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2033, says MINT’s manager pertaining to stats from DC Byte’s Japan information centre market report for this year. The similar report notes that the job price is expected to tighten to 6% by 2033, from 9% in 2023 and 23% in 2018.
The establishment features an information facility, back office, training establishments and a surrounding rental wing that has the plausible to get redeveloped into a multi-storey data centre.
The proposed purchase is secured under the conditional trust beneficiary interest acquisition and share arrangement with Nagayama Tokutei Mokuteki Kaisha, an unconnected third-party supplier. Under the framework, MINT will have a reliable financial interest of 98.47% in the real property with an acquisition expense of JPY14.9 billion. The balance of the acquisition consideration will be funded by MINT’s supporter, Mapletree Investments.
The estate is currently totally leased to a Japanese conglomerate and has a measured standard lease to expiry (WALE) of 5 years. The existing lease is a classic ordinary one where the occupant has the choice to extend its lease.
It will also enhance MINT’s geographical diversification 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.
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 information centre operators have increased into new information centre collections throughout Greater Tokyo in view of the restrictions of land and power and the need for better redundancy. These resulted in West Tokyo ending up being a larger submarket, that represented about 40% of total real-time IT supply in Greater Tokyo market,” the REIT manager describes in its Sept 30 announcement.
According to MINT, the real estate remains in a critical place, which presents a future redevelopment possibility that develops added value.
