Mapletree Industrial Trust · SGX:ME8U
Mapletree Industrial Trust — Merger or Acquisition (January 2019)
28 slides from Mapletree Industrial Trust's merger presentation, January 2019
Slide 1: Proposed Acquisition of 18 Tai Seng, Singapore
Proposed Acquisition of 18 Tai Seng, Singapore January 2019
Slide 2: Important Notice
Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) circular to unitholders in relation to the proposed acquisition of 18 Tai Seng, Singapore which is an interested person transaction dated 4 January 2019. This presentation is for information onl
Slide 3: Contents
Contents 1 Overview 2 Funding Structure and Valuation 3 Rationale for the Proposed Acquisition 4 Conclusion 5 EGM Resolution 3
Slide 4: Overview
OVERVIEW 18 Tai Seng, Singapore
Slide 5: Overview of the Proposed Acquisition
Overview of the Proposed Acquisition Proposed acquisition of 18 Tai Seng, Singapore, a unique nine-storey mixed-use industrial development with Business 2 industrial, office and retail spaces Address 18 Tai Seng Street, Singapore 539775 Agreed property value S$268.3 million Total acquisition S$271.0
Slide 6: Strategically Located in Paya Lebar iPark
Strategically Located in Paya Lebar iPark At the Centre of Paya Lebar iPark: Singapore’s Modern Industrial Park Short drive from mature housing estates like Hougang, Bedok and Toa Payoh and Central Business District Prominent frontage along Upper Paya Lebar Road Easily accessible via major expre
Slide 7: Structure of Proposed Acquisition
Structure of Proposed Acquisition Proposed acquisition of 18 Tai Seng, Singapore from Mapletree Tai Seng Pte. Ltd. (indirect wholly-owned subsidiary of Mapletree Investments Pte Ltd) is subject to Unitholders’ approval1 Existing Holding New Holding Structure Structure After Acquisition To acquire 18
Slide 8: Funding Structure and Valuation
FUNDING STRUCTURE AND VALUATION Underground Pedestrian Link to Tai Seng MRT Station
Slide 9: Total Acquisition Outlay
Total Acquisition Outlay S$ million Agreed Property Value 268.3 Intercompany Loan (156.8) Distribution Payable (for Retained Earnings up to Completion Date)1 (30.4) Other Net Liabilities (6.1) Aggregate Consideration2 75.0 About Aggregate Consideration2 75.0 S$262.2 Trustee’s Loan to Marina Trust (f
Slide 10: Pro Forma Financing
Pro Forma Financing Sufficient debt headroom to fund the proposed Acquisition entirely by debt Final decision regarding whether the acquisition will be funded entirely by debt financing or any combination of financing through debt, equity and internal cash resources will depend on market conditi
Slide 11: Market Valuation by Independent Valuers
Market Valuation by Independent Valuers Agreed Property Value Relative to Independent Valuations1 (S$ million) 270.0 268.3 268.3 0.6% discount Savills Valuation Colliers Valuation Agreed Property Value (Commissioned by the Manager) (Commissioned by the Trustee) 1 Both Colliers and Savills relied on
Slide 12: Rationale for the Proposed Acquisition
RATIONALE FOR THE PROPOSED ACQUISITION 18 Tai Seng, Singapore
Slide 13: Rationale for the Proposed Acquisition
Rationale for the Proposed Acquisition Unique Integrated High-Specification Industrial Development 1 with Office and Retail Spaces Centrally Located in the Paya Lebar iPark with Underground 2 Pedestrian Link to Tai Seng MRT Station 3 Stable and Quality Cash Flows 4 DPU and NAV Accretive to Unitholde
Slide 14: Unique Integrated High-Specification Industrial Development with Office and Retail Spaces
Unique Integrated High-Specification Industrial 1 Development with Office and Retail Spaces Established food and beverage outlets with essential amenities High quality finishes for common areas Newest mixed-use industrial development (completed on 1 Nov 2016) in Paya Lebar iPark Large column-fre
Slide 15: Centrally Located in the Paya Lebar iPark
Centrally Located in the Paya Lebar iPark with 2 Underground Pedestrian Link to Tai Seng MRT Station Increased exposure to Paya Lebar iPark Modern 15ha industrial park nestled in mature Paya Lebar industrial estate Designed to foster close interaction and collaboration between the businesses and
Slide 16: Direct underground pedestrian link to Tai Seng MRT Station
Centrally Located in the Paya Lebar iPark with 2 Underground Pedestrian Link to Tai Seng MRT Station Direct underground pedestrian link to Tai Seng MRT Station Sole property with a direct underground pedestrian link to Tai Seng MRT Station (CC11) Connected to key interchanges via the Circle Line
Slide 17: Stable and Quality Cash Flows
3 Stable and Quality Cash Flows Strong Tenant Base with Established Tenants Leased to 44 high-quality % of Gross tenants Top 10 Tenants Rental Income (As at 30 Sep 2018) Enlarges tenant base to Sivantos Pte. Ltd. 36.6% include multinational companies in high value- Silicon Laboratories Internati
Slide 18: Stable and Quality Cash Flows: Trade Sector Diversification
3 Stable and Quality Cash Flows Diversification across Trade Sectors 18
Slide 19: Well-structured Leases with Embedded Organic Growth
3 Stable and Quality Cash Flows Well-structured Leases with Embedded Organic Growth LEASE EXPIRY PROFILE OF THE PROPERTY (BY GROSS RENTAL INCOME) As at 30 September 2018 78.0% of leases expiring in FY22/23 & beyond, which enhance income stability 78.0% 20.5% 0.0% 1.2% 0.3% FY18/19 FY19/20 FY20/21 FY
Slide 20: DPU and NAV Accretive to Unitholders
4 DPU and NAV Accretive to Unitholders Assuming LTV 100.0%, 60.0% and 40.0% for illustrative purposes: Expected to result in pro forma DPU accretion of 3.1%, 1.5% and 0.7% respectively Expected to result in pro forma net asset value per Unit of S$1.47, S$1.48 and S$1.49 respectively Distribution
Slide 21: Strengthens the MIT Portfolio
5 Strengthens the MIT Portfolio In Line with Strategy to Grow Hi-Tech Buildings Segment Pre-Acquisition1 Post-Acquisition2 Hi-Tech Buildings segment accounted for Hi-Tech Buildings segment expected to 39.2% of the MIT portfolio increase to 42.7%2 of MIT portfolio 90.3% Singapore, 9.7% United S
Slide 22: Strengthens the MIT Portfolio: Tenant Risk Exposure
5 Strengthens the MIT Portfolio Reduces Maximum Risk Exposure to Any Single Tenant From 10.0% to 9.4% TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 30 September 2018 10.0% 9.4% 26.3% 25.8% Contribution of Contribution of Top 10 Tenants in Top 10 Tenants in Existing Portfolio Enlarged Portfolio 3.3%3.
Slide 23: Improves Lease Expiry Profile for Enlarged Portfolio
5 Strengthens the MIT Portfolio Improves Lease Expiry Profile for Enlarged Portfolio Pre-Acquisition: Lease Expiry Profile1 Post-Acquisition: Lease Expiry Profile2 33.5% 31.1% 24.9% 23.7% 20.5% 20.5% 15.8% 15.0% 7.7% 7.3% FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 & FY18/19 FY19/20 FY20/21 FY21/22 FY22
Slide 24: Conclusion
CONCLUSION 18 Tai Seng, Singapore
Slide 25: Conclusion
Conclusion Unique integrated high-specification industrial development Strategic with office and retail spaces Addition of Sole property in Paya Lebar iPark with underground pedestrian High Quality link to Tai Seng MRT Station Centrally located in Paya Lebar iPark with easy accessibility Asset
Slide 26: EGM Resolution
EGM RESOLUTION 18 Tai Seng, Singapore
Slide 27: Summary of Approval Required
Summary of Approval Required Deloitte & Touche Corporate Finance Pte Ltd1 (the “Independent Financial Adviser”) is of the opinion that Proposed Acquisition is based on normal commercial terms and will not be prejudicial to the interests of MIT and its minority unitholders Accordingly, the Independen
Slide 28: End of Presentation
End of Presentation For enquiries, please contact Ms Melissa Tan, Vice President, Investor Relations, DID: (65) 6377 6113, Email: melissa.tanhl@mapletree.com.sg
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