Asset is fully leased to a Japanese conglomerate with a weighted average lease to expiry of about five years
MAPLETREE Industrial Trust (MIT) will be acquiring a freehold, mixed-use property in Tokyo for 14.5 billion yen (S$130 million), with the purchase expected to improve its yield and to be funded by yen-denominated borrowings, its manager said in a regulatory filing on Monday (Sep 30).
MIT Management said the trust is expected to complete the purchase of an effective interest of 98.47 per cent in the property by the fourth quarter of this year. The property comprises a data centre, back office, training facilities and an adjacent accommodation wing.
MIT has entered into a conditional trust beneficiary interest purchase and share agreement with seller Nagayama Tokutei Mokuteki Kaisha. The price is a discount of about 3.3 per cent to the independent valuation of 15 billion yen by JLL Morii Valuation & Advisory.
The freehold property is fully leased to a Japanese conglomerate with a weighted average lease to expiry of about five years.
Lily Ler, chief executive of MIT Management, said: “Its strategic location in West Tokyo, a key data centre cluster in Greater Tokyo, will present a future redevelopment opportunity to a new data centre. The future redevelopment will benefit from the robust demand for data centres, as well as tight supply and limited development opportunities in West Tokyo.”
Citing a research report, the trust manager said West Tokyo is becoming a larger submarket, which accounts for about 40 per cent of total live IT supply in the Greater Tokyo market.
MIT units fell 2 per cent or S$0.05 to close at S$2.43 on Monday, before the announcement.
