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Mapletree Greater China Commercial Trust (MGCCT) has agreed to conditionally acquire a 98.47 percent stake in a portfolio of six freehold offices in Tokyo, Yokohama and Chiba from MJOF for a total of 60.93 billion yen (approx. S$753.4 million).
According to an SGX filing on Wednesday (28 Mar), the remaining 1.53 percent stake will be owned by Mapletree Investments Japan Kabushiki Kaisha (MIJ).
Collectively, the properties have a net lettable area and gross floor area of 1.6 million sq ft and 1.65 million sq ft, respectively. As of 31 December 2017, they have weighted average lease expiry of 5.8 years. They also have an occupancy rate of 99.9 percent with a total of 21 tenants.
Cindy Chow, CEO of Mapletree Greater China Commercial Trust Management, revealed that these freehold offices with relatively higher yield spread are currently not available in MGCCT’s existing market. Moreover, the properties are strategically situated near transportation hubs.
“The proposed acquisition will enhance MGCCT’s geographical, tenant and sector diversification, and increase the total number of assets from three to nine,” she noted.
Upon completion of the acquisition, MGCCT will be renamed as Mapletree North Asia Commercial Trust and the total value of its properties will increase by 11 percent from S$6.2 billion to S$7.0 billion.
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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