Mapletree North Asia Commercial Trust to buy building housing HP Japan HQ for 38.8b yen
MAPLETREE North Asia Commercial Trust has entered into an agreement to buy almost the entire stake in a freehold single-tenanted office building in Tokyo, now used as Hewlett-Packard Japan headquarters.
Mapletree North Asia Commercial Trust Management, manager of the real estate investment trust (Reit), announced in a regulatory filing on Friday the purchase of an effective interest of 98.47 per cent in the building for 38.8 billion yen (S$467.3 million) from an unrelated third-party vendor.
The balance effective interest of 1.53 per cent in the property will be held by Mapletree Investments Japan Kabushiki Kaisha, an indirect wholly-owned subsidiary of Mapletree Investments, the Reit's sponsor.
The property is 100 per cent leased to Hewlett-Packard Japan and has a lease expiry of 8.8 years.
The Reit manager stated the acquisition is expected to provide a stable income stream for the Reit, as well as be accretive in terms of distribution per unit.
The assets under management of the enlarged portfolio will stand at S$8.4 billion, or an increase of 6 per cent from that of the existing portfolio of S$7.9 billion.
SEE ALSO
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Contribution from Japan will increase from 16.6 per cent to 21.3 per cent by assets under management, or increase from 22.4 per cent to 26.7 per cent by net property income.
The manager intends to finance the purchase and relevant costs through a combination of debt financing and the issuance of perpetual securities. Aggregate leverage post acquisition is expected to be 41.9 per cent, up marginally from 41.5 per cent now.
Completion is subject to the conditions being fulfilled and is expected to take place by June 30.
The Reit rose 0.98 per cent to S$1.03 on Friday, before this announcement was made.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
StarHub posts 8.1% rise in Q1 net profit to S$40.1 million despite flat revenue
China’s Alibaba beats quarterly revenue estimates, profit drops
Warburg Pincus is relocating a New York dealmaker to Singapore
Foxconn-backed Sharp to end TV display production, cut staff
ComfortDelGro posts 23.8 per cent rise in net profit on higher fees and fares
Stellantis, Leapmotor to start sales of budget EVs in nine European countries in September