MCT makes S$1.78b purchase from sponsor

Singapore

MAPLETREE Commercial Trust (MCT) has agreed to acquire the office and business park components of Mapletree Business City Phase 1 (MBC Phase 1) from its sponsor Mapletree Investments for S$1.78 billion.

This involves the purchase of the strata leasehold interest of an office tower and three business park blocks spanning a total net lettable area of more than 1.7 million sq ft.

A put and call option agreement was entered into on Tuesday between MCT's trustee, DBS Trustee Limited, and Mapletree's wholly owned unit Mapletree Business City Pte Ltd.

Upon completion of acquisition, MCT's asset size will increase from S$4.3 billion to S$6.1 billion.

According to MCT's circular to unitholders, the acquisition is estimated to provide a 3.2 per cent accretion on MCT's distribution per unit (DPU) for the forecast six-month period of Oct 1, 2016 to March 31, 2017. Assuming the acquisition was completed on March 31, 2016, the proforma effect is a 2.…