Brokers' take

Mapletree Greater China Commercial Trust | Buy

June 16 close: S$1.035

Target price: S$1.11

OCBC Investment Research, June 16

Mapletree Greater China Commercial Trust (MGCCT) announced that it has entered into a conditional sale and purchase agreement with an unrelated third party vendor to acquire a 100% interest in Sandhill Plaza for a purchase consideration of 1,888.1 million yuan or about S$412.2 million. This translates into an initial NPI (net property income) yield of 3.85 per cent. Major tenants include Broadcom, Disney and Borouge. Future growth would likely come from positive rental reversions, in our view, as the current passing rent at Sandhill Plaza (about 4.82 yuan per sq m per day) is about 10 per cent below the average rental of its comparable basket …