Mapletree Industrial Trust proposes to acquire Tokyo freehold mixed-use property for JPY14.5 bil
The consideration represents a discount rate of some 3.3% to the real property’s evaluation of JPY15.0 billion. The real estate was on their own valued by JLL Morii Valuation & Advisory K.K.
With strong demand and limited supply development, the data centre area is expected to expand at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2033, states MINT’s supervisor pertaining to statistics from DC Byte’s Japan data centre market record for this year. The same report notes that the job price is expected to tighten up to 6% by 2033, from 9% in 2023 and 23% in 2018.
“End-users and information centre providers have actually broadened right into brand-new information hub clusters throughout Greater Tokyo in view of the restrictions of land and power and the need for higher redundancy. These caused West Tokyo becoming a bigger submarket, which made up around 40% of overall online IT supply in Greater Tokyo market,” the REIT manager discusses in its Sept 30 statement.
Mapletree Industrial Trust (MINT) is recommending to get a multi-storey mixed-use establishment in Tokyo, Japan for JPY14.5 billion ($129.8 million).
Constructed in October 1992, the building rests on freehold land determining around 91,200 sq ft. The building has a gross floor location of around 319,300 sq ft.
On a historical pro forma basis, the proposed acquisition and its proposed method of financing will be accretive to MINT’s distribution per unit (DPU). The supervisor means to finance the overall expense with Japanese yen (JPY)-denominated credits to “provide a natural capital hedge”. MINT’s accumulation leverage ratio is expected to raise to 39.8% from 39.1% as at June 30.
Additionally, the proposed acquisition grabs possibilities in Japan, that has over 5,000 megawatts of total IT supply and is Asia-Pacific’s (APAC) third-largest data facility market.
The center includes an information centre, back workplace, training facilities and a surrounding rental wing that has the likely to be redeveloped right into a multi-storey data facility.
The estate is currently fully contracted to a Japanese group and has a weighted average lease to expiry (WALE) of five years. The current rent is a traditional ordinary one where the renter has the option to continue its contract.
Adhering to the proposed acquisition, MINT will have 65.9% of freehold real estates in its profile, up from the percentage 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 exact same period.
The suggested 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 is going to have an efficient financial rate of interest of 98.47% in the real property with an acquisition expense of JPY14.9 billion. The balance of the purchase factor will be budgeted by MINT’s sponsor, Mapletree Investments.
The suggested acquisition is assumed to occur by the 4th quarter of 2024.
It will certainly additionally enhance MINT’s geographical diversity with its Japan profile up by 1.3 percentage points to 6.4% from 5.1% as at June 30. MINT’s Singaporean and North American estates will stand for 47.3% and 46.3% respectively.
According to MINT, the real estate remains in a strategic location, which offers a future redevelopment possibility that produces added value.
