- Mapletree Industrial Trust (SGX:ME8U) is acquiring a mixed-use industrial facility in Tokyo, Japan for JPY14.5b (~S$127.8m). The freehold asset bodes redevelopment potential when the existing lease rolls off. We like the potential upside from the redevelopment potential, and an NPI yield of 4%, which offers downside protection.
Acquisition asset within existing data-centre cluster
- - Read this at SGinvestors.io -
- The redevelopment scenario assumes non-renewal in 5 years and a data centre to be built by 2033/ 2034. Management guided for 30-40MW of potential IT load and 5.5-6% yield-on-cost for a powered shell data centre.
- The site is located within a data-centre cluster in west Tokyo, which accounts for ~40% of total IT supply in Greater Tokyo. The current land zoning for the site allows for development of a data centre.
Financed by JPY-denominated loan
- - Read this at SGinvestors.io -
- Mapletree Industrial Trust resumed DRP (distribution reinvestment plan) in 1Q24. The proceeds from DRP could reduce the gearing progressively.
- In our view, it’s more likely Mapletree Industrial Trust could execute its divestment pipeline of S$200-400m in the next 12 months, given a more favourable transaction market.
Portfolio reconstitution gaining momentum
- Read more at SGinvestors.io.
