Mapletree Industrial Trust proposes to acquire Tokyo freehold mixed-use property for JPY14.5 bil
The proposed purchase is made under the conditional trust beneficiary interest rate purchase and stake agreement with Nagayama Tokutei Mokuteki Kaisha, an unassociated third-party vendor. Under the structure, MINT is going to have an effective financial rate of interest of 98.47% in the real estate with a purchase expense of JPY14.9 billion. The balance of the acquisition factor will be funded by MINT’s sponsor, Mapletree Investments.
Developed in October 1992, the property sits on freehold land determining approximately 91,200 sq ft. The building has a gross floor surface area of around 319,300 sq ft.
With strong demand and limited supply growth, the information centre space is assumed to expand at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2033, states MINT’s manager referring to statistics from DC Byte’s Japan information centre market report for this year. The same report notes that the job rate is expected to tighten to 6% by 2033, from 9% in 2023 and 23% in 2018.
Additionally, the suggested acquisition captures options in Japan, that has more than 5,000 megawatts of total IT supply and is Asia-Pacific’s (APAC) third-largest information center market.
“End-users and data centre providers have actually increased right into new data centre collections across Greater Tokyo in view of the constraints of land and power and the demand for greater redundancy. These caused West Tokyo ending up being a larger submarket, which made up about 40% of total live IT supply in Greater Tokyo market,” the REIT supervisor clarifies in its Sept 30 statement.
On a historic pro forma basis, the proposed purchase and its proposed strategy of funding are going to be accretive to MINT’s distribution per unit (DPU). The supervisor means to finance the total expense through Japanese yen (JPY)-denominated credits to “supply a natural funding hedge”. MINT’s aggregate leverage ratio is anticipated to boost to 39.8% from 39.1% as at June 30.
According to MINT, the real estate is in an important place, which offers a future redevelopment possibility that creates added value.
The factor exemplifies a discount of some 3.3% to the property’s valuation of JPY15.0 billion. The property was alone valued by JLL Morii Valuation & Advisory K.K.
It will additionally enhance 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 stand for 47.3% and 46.3% respectively.
The suggested purchase is assumed to occur by the fourth quarter of 2024.
The estate is currently completely leased to a Japanese corporation and has a measured average lease to expiry (WALE) of five years. The present lease is a traditional regular one where the lessee has the selection to extend its lease.
The center includes a data facility, back office, training centers and a surrounding accommodation wing that has the plausible for being redeveloped right into a multi-storey information centre.
Mapletree Industrial Trust (MINT) is recommending to acquire a multi-storey mixed-use facility in Tokyo, Japan for JPY14.5 billion ($129.8 million).
Complying with the recommended purchase, MINT will have 65.9% of freehold real estates in its portfolio, up from the percentage of 65.8% as at June 30. Its profile will certainly grow to $9.1 billion by assets under management (AUM) up from $9.0 billion as at the very same period.
