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Mapletree Industrial Trust (MIT) is acquiring a mixed-use development at 18 Tai Seng Street from a unit of Mapletree Investments for an agreed property value of $268.3 million.
In an SGX filing, MIT revealed that the agreed property value of $268.3 million represents a 0.6 percent discount to Savills’ independent valuation and is in line with Colliers International’s valuation.
With a gross floor area of around 443,810 sq ft, the nine-storey development comprises Business 2 industrial, retail and office spaces. It has a committed portfolio occupancy rate of 94.3 percent, with tenants including multinational companies in sectors such as automotive technology, information and communication technology as well as medical technology.
It also has a weighted average lease expiry of around 3.6 years, with 78 percent of leases expiring in the financial year 2022/2023 and beyond.
“This is a rare opportunity to acquire a unique integrated industrial development in the modern Paya Lebar iPark. With its excellent connectivity as well as a wide variety of food and beverage offerings and amenities, 18 Tai Seng is a choice location for tenants who are looking for high quality business space in the city fringe,” said Tham Kuo Wei, chief executive of the trust’s manager.
“The proposed acquisition marks another milestone in our strategy to grow the hi-tech buildings segment. Following the acquisition, MIT’s total assets under management will increase from $4.4 billion to $4.7 billion, with the hi-tech buildings segment accounting for 42.7 percent (up from 39.2 percent).”
With the total acquisition cost at about $271.0 million, MIT’s manager said the trust has sufficient capacity to fully finance the acquisition through debt.
However, MIT may consider a combination of debt and equity, depending on market conditions, it added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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