- 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.
