Mapletree Commercial Trust (MCT) is acquiring the office and business park components of Mapletree Business City (Phase 1) from sponsor Mapletree Investments for a purchase consideration of $1.78 billion.
One of the largest integrated office and business park complexes in Singapore, Mapletree Business City (Phase 1) the acquisition involves the purchase of the strata leasehold interest of an office tower and three business park blocks with a total net lettable area of over 1.7 million sf.
The purchase consideration represents a discount of 2.6% based on the average of two independent valuations conducted by Knight Frank and DTZ Denham Tie Leung (SEA).
Including acquisition-related expenses, the total acquisition cost is expected to be $1.86 billion. MCT expects to fund the acquisition with a combination of debt and equity.
Since its completion in 2010, the property has attracted a strong and diverse tenant base comprising well-known and reputable multinational corporations such as The Hongkong and Shanghai Banking Corporation, Samsung Asia, Unilever Asia and SAP Asia.
Backed by these strong tenants, the property has historically enjoyed strong occupancy rates of over 99.0%. The property also has committed occupancy of 99.0%3with a weighted average lease to expiry of 3.5 years.
About 97.5% of leases by Gross Rental Income have built-in annual step-ups of approximately 3.0% on average.
The acquisition is expected to contribute a Net Property Income (NPI) yield of 5.6% without any income support, which is higher than the existing portfolio’s NPI yield of 5.1%. The acquisition is further expected to be DPU and NAV accretive.
The acquisition is subject to the approval of MCT unitholders.
Units of MCT closed 1.34% higher at $1.51.
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One of the largest integrated office and business park complexes in Singapore, Mapletree Business City (Phase 1) the acquisition involves the purchase of the strata leasehold interest of an office tower and three business park blocks with a total net lettable area of over 1.7 million sf.
The purchase consideration represents a discount of 2.6% based on the average of two independent valuations conducted by Knight Frank and DTZ Denham Tie Leung (SEA).
Including acquisition-related expenses, the total acquisition cost is expected to be $1.86 billion. MCT expects to fund the acquisition with a combination of debt and equity.
Since its completion in 2010, the property has attracted a strong and diverse tenant base comprising well-known and reputable multinational corporations such as The Hongkong and Shanghai Banking Corporation, Samsung Asia, Unilever Asia and SAP Asia.
Backed by these strong tenants, the property has historically enjoyed strong occupancy rates of over 99.0%. The property also has committed occupancy of 99.0%3with a weighted average lease to expiry of 3.5 years.
About 97.5% of leases by Gross Rental Income have built-in annual step-ups of approximately 3.0% on average.
The acquisition is expected to contribute a Net Property Income (NPI) yield of 5.6% without any income support, which is higher than the existing portfolio’s NPI yield of 5.1%. The acquisition is further expected to be DPU and NAV accretive.
The acquisition is subject to the approval of MCT unitholders.
Units of MCT closed 1.34% higher at $1.51.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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