Mapletree Industrial Trust proposes to acquire Tokyo freehold mixed-use property for JPY14.5 bil
The estate is presently completely rented to a Japanese group and has a measured common lease to expiry (WALE) of 5 years. The existing rent is a classic ordinary one where the renter has the choice to extend its contract.
“End-users and information centre providers have broadened right into brand-new information hub clusters throughout Greater Tokyo in view of the restraints of land and power and the need for better redundancy. These caused West Tokyo coming to be a bigger submarket, which represented about 40% of complete live IT supply in Greater Tokyo market,” the REIT manager describes in its Sept 30 news.
The proposed acquisition is anticipated to occur by the fourth quarter of 2024.
In addition, the suggested procurement captures possibilities in Japan, that has over 5,000 megawatts of whole IT supply and is Asia-Pacific’s (APAC) third-largest data facility market.
The recommended procurement is secured under the conditional trust beneficiary interest rate purchase and stake arrangement with Nagayama Tokutei Mokuteki Kaisha, an unrelated third-party vendor. Under the framework, MINT is going to have a reliable financial interest of 98.47% in the real property with a purchase outlay of JPY14.9 billion. The balance of the purchase factor will certainly be budgeted by MINT’s supporter, Mapletree Investments.
Adhering to the suggested purchase, MINT is going to have 65.9% of freehold real estates in its profile, up from the proportion of 65.8% as at June 30. Its profile will certainly expand to $9.1 billion by assets under management (AUM) up from $9.0 billion as at the same period.
It will additionally improve MINT’s geographical diversification 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 buildings will represent 47.3% and 46.3% specifically.
Lakegarden Residences Singapore
With strong need and minimal supply growth, the data centre space is anticipated to grow at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2033, states MINT’s supervisor pertaining to stats from DC Byte’s Japan information centre market report for this year. The same report notes that the job rate is expected to tighten up to 6% by 2033, from 9% in 2023 and 23% in 2018.
Mapletree Industrial Trust (MINT) is suggesting to obtain a multi-storey mixed-use facility in Tokyo, Japan for JPY14.5 billion ($129.8 million).
According to MINT, the real estate is in a critical location, which offers a future redevelopment opportunity that develops added value.
The factor exemplifies a discount of some 3.3% to the real estate’s evaluation of JPY15.0 billion. The real estate was independently valued by JLL Morii Valuation & Advisory K.K.
Built in October 1992, the structure rests on freehold land determining around 91,200 sq ft. The property has a gross floor surface location of around 319,300 sq ft.
The establishment features an information centre, back office space, training establishments and a nearby hotel wing that has the potential to get redeveloped into a multi-storey information facility.
On a historic pro forma basis, the suggested acquisition and its proposed strategy of financing are going to be accretive to MINT’s distribution per unit (DPU). The supervisor intends to finance the total cost via Japanese yen (JPY)-denominated credits to “provide a natural resources hedge”. MINT’s accumulation leverage proportion is assumed to raise to 39.8% from 39.1% as at June 30.
