- Mapletree Industrial Trust (SGX:ME8U) will buy a newly built data centre in downtown Osaka, Japan for S$505.9m at ~4% NPI yield. The deal will be financed by a mix of JPY debt and equity fund raise (EFR). In addition, existing S$/US$ debt will be refinanced by additional JPY debt.
- - Read this at SGinvestors.io -
- We maintain our HOLD rating.
Attractive asset in a growth market
- The high quality data centre (Uptime Tier III+ rating) has a power capacity of >10MW. It is 100% leased to an established data centre (DC) operator on a WALE of ~20 years (by income) and with minimal operational obligations.
- - Read this at SGinvestors.io -
- Underlying land has 67yrs of residual tenure.
- The deal provides strategic entry into Japan (3rd largest APAC DC market) and into Osaka with growing hyper scaler demand as an alternative hub to Tokyo. Mapletree Industrial Trust intends to grow Japan data centre to ~10% of AUM riding the demand and favourable cost of capital.
Well-structured for DPU, NAV accretion, Planned EFR
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2023-05-25
Read also Maybank's most recent report:
2024-01-28 Mapletree Industrial Trust - Headwind From Us Datacentres.
Previous report by Maybank:
2023-10-30 Mapletree Industrial Trust - Slowing Momentum.
Price targets by 2 other brokers at Mapletree Industrial Trust Target Prices.
Listing of research reports at Mapletree Industrial Trust Analyst Reports.
Relevant links:
Mapletree Industrial Trust Share Price History,
Mapletree Industrial Trust Announcements,
Mapletree Industrial Trust Dividends & Corporate Actions,
Mapletree Industrial Trust News Articles
