Mapletree Industrial Trust proposes to acquire Tokyo freehold mixed-use property for JPY14.5 bil
The proposed acquisition is secured under the conditional trust beneficiary interest rate acquisition and share arrangement with Nagayama Tokutei Mokuteki Kaisha, an unrelated third-party vendor. Under the structure, MINT will have an effective economic interest rate of 98.47% in the real property with an acquisition outlay of JPY14.9 billion. The balance of the acquisition consideration will be budgeted by MINT’s sponsor, Mapletree Investments.
It will definitely also 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 estates will certainly stand for 47.3% and 46.3% respectively.
With strong need and minimal supply growth, the information centre area is expected to expand at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2033, says MINT’s supervisor referring to statistics from DC Byte’s Japan data centre market record for this year. The same report notes that the vacancy price is expected to tighten up to 6% by 2033, from 9% in 2023 and 23% in 2018.
Following the suggested procurement, MINT will have 65.9% of freehold real estates in its profile, up from the percentage 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 same duration.
According to MINT, the property remains in a strategic place, which presents a future redevelopment chance that develops added worth.
Additionally, the suggested purchase catches options in Japan, which has over 5,000 megawatts of overall IT supply and is Asia-Pacific’s (APAC) third-largest information center market.
The estate is presently fully contracted to a Japanese group and has a measured average lease to expiry (WALE) of 5 years. The present contract is a traditional regular one where the lessee has the selection to extend its lease.
The suggested acquisition is assumed to occur by the fourth quarter of 2024.
Mapletree Industrial Trust (MINT) is proposing to acquire a multi-storey mixed-use establishment in Tokyo, Japan for JPY14.5 billion ($129.8 million).
The center consists of an information centre, back office, training facilities and a nearby hotel wing that has the plausible for being redeveloped right into a multi-storey data centre.
On a historic pro forma basis, the proposed procurement and its recommended approach of financing are going to be accretive to MINT’s distribution per unit (DPU). The manager plans to fund the total cost through Japanese yen (JPY)-denominated fundings to “provide an all-natural resources hedge”. MINT’s accumulation leverage proportion is anticipated to raise to 39.8% from 39.1% as at June 30.
“End-users and data centre providers have expanded into brand-new information hub collections throughout Greater Tokyo because the restrictions of land and power and the requirement for higher redundancy. These resulted in West Tokyo ending up being a larger submarket, which accounted for about 40% of overall real-time IT supply in Greater Tokyo market,” the REIT supervisor explains in its Sept 30 statement.
The factor represents a discount rate of some 3.3% to the real estate’s assessment of JPY15.0 billion. The real estate was on their own valued by JLL Morii Valuation & Advisory K.K.
Constructed in October 1992, the property remains on freehold land determining roughly 91,200 sq ft. The property has a gross floor surface area of around 319,300 sq ft.
