Mapletree North Asia Commercial Trust (MNACT) has entered a deal to acquire 98.47 percent of two multi-tenanted office properties in Greater Tokyo, Japan, from its sponsor, Mapletree Investments, for S$482.5 million, or around 37.91 billion yen, the REIT said in a filing to SGX Wednesday.
“A key focus for the manager is to continue to accelerate the income diversification of MNACT through acquisitions. The proposed acquisition of the two office towers in Greater Tokyo will contribute to the diversification of MNACT and at the same time, reduce the income and asset concentration of Festival Walk,” Cindy Chow, CEO of the REIT’s manager, said in the statement.
“The properties in Japan are freehold, and provide a relatively higher yield spread against the local cost of funds compared to the Greater China market,” she added. “Well-located in attractive office hubs in the Greater Tokyo area and with convenient access to public transport nodes, the properties have good specifications and are cost-efficient locations for tenants.”
She said the 53-tenant base included a diverse trade mix, such as from the information technology, financial and real estate sectors.
The net property income yield of 4.5 percent for the proposed acquisitions was also expected to offer an attractive yield spread compared with the local cost of funds, Chow added.
The REIT said it plans to finance the acquisition via issuing units, debt financing and/or internal cash resources.
The first property is mBay Point Makuhari Building, or MBP, a 26-storey office building with one basement level and 680 car park lots, located in Chiba, Japan, the filing said.
The second property is Omori Prime Building, or OPB, a 13-storey office building with one basement level, 36 mechanical car park lots and one open car park lot, located in Shinagawa-ku, Tokyo, at the fringe of the central five wards in Tokyo, the filing said.