Mapletree Industrial Trust proposes to acquire Tokyo freehold mixed-use property for JPY14.5 bil
Mapletree Industrial Trust (MINT) is suggesting to obtain a multi-storey mixed-use facility in Tokyo, Japan for JPY14.5 billion ($129.8 million).
With strong demand and minimal supply development, the information centre space is expected to expand at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2033, states MINT’s supervisor referring to statistics from DC Byte’s Japan data centre market record for this year. The same report notes that the job price is anticipated to tighten up to 6% by 2033, from 9% in 2023 and 23% in 2018.
“End-users and information centre providers have broadened right into new information hub clusters throughout Greater Tokyo because the restraints of land and power and the requirement for higher redundancy. These caused West Tokyo ending up being a larger submarket, that accounted for around 40% of overall online IT supply in Greater Tokyo market,” the REIT manager describes in its Sept 30 statement.
The proposed procurement is assumed to happen by the fourth quarter of 2024.
In addition, the proposed procurement captures chances in Japan, that has more than 5,000 megawatts of overall IT supply and is Asia-Pacific’s (APAC) third-largest data centre market.
It will certainly also enhance MINT’s geographical diversification with its Japan profile up by 1.3 percent points to 6.4% from 5.1% as at June 30. MINT’s Singaporean and North American properties will stand for 47.3% and 46.3% respectively.
On a historical pro forma basis, the suggested procurement and its recommended method of funding will be accretive to MINT’s distribution per unit (DPU). The manager means to finance the total cost with Japanese yen (JPY)-denominated fundings to “provide an all-natural capital hedge”. MINT’s accumulation leverage ratio is assumed to boost to 39.8% from 39.1% as at June 30.
The consideration stands for a discount rate 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.
According to MINT, the real estate is in a critical place, which offers a future redevelopment possibility that develops added value.
Following the suggested purchase, 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 portfolio will develop to $9.1 billion by assets under management (AUM) up from $9.0 billion as at the very same duration.
Built in October 1992, the building sits on freehold land determining roughly 91,200 sq ft. The property has a gross floor surface area of around 319,300 sq ft.
The property is presently totally rented to a Japanese corporation and has a measured average lease to expiry (WALE) of five years. The existing contract is a classic regular one where the lessee has the choice to extend its lease.
The proposed acquisition is secured under the conditional trust beneficiary interest acquisition and stake arrangement with Nagayama Tokutei Mokuteki Kaisha, an unconnected third-party supplier. Under the framework, MINT will have a reliable financial interest rate of 98.47% in the property with a procurement expense of JPY14.9 billion. The balance of the purchase factor will certainly be financed by MINT’s sponsor, Mapletree Investments.
The establishment features an information facility, back office space, training centers and a nearby rental wing that has the plausible to get redeveloped into a multi-storey data centre.
