Mapletree Industrial Trust · SGX:ME8U
Mapletree Industrial Trust — Merger or Acquisition (May 2023)
18 slides from Mapletree Industrial Trust's merger presentation, May 25, 2023
Slide 1: Proposed Acquisition of a Data Centre in Osaka, Japan
Proposed Acquisition of a Data Centre in Osaka, Japan 25 May 2023
Slide 2: Important Notice
Important Notice NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (“U.S.”), EUROPEAN ECONOMIC AREA, UNITED KINGDOM, CANADA, JAPAN OR AUSTRALIA This presentation should be read in conjunction with the announcements released by Mapletree Industrial T
Slide 3: Overview of the Proposed Acquisition
Overview of the Proposed Acquisition Proposed Acquisition Acquisition of a data centre in downtown Osaka, Japan Purchase Consideration / 100% Basis: JPY52.0 billion (approximately S$507.9 million1) Effective Consideration 98.47% MIT effective interest2: JPY51.2 billion (approximately S$500.1 million
Slide 4: Property Overview
Property Overview IT Capacity High-quality, Japan Newly-built Data Centre 3rd largest data centre market in APAC4 >10MW Multi-storey fully-fitted data centre Uptime Tier Equivalent1 Located in downtown Osaka Tier III+ Construction and first phase of fit-out works completed in Nov Occupancy Rat
Slide 5: Proposed Holding Structure
Proposed Holding Structure Mapletree Industrial Trust Redwood DC Holdings Pte Ltd Etowah DC Hudson DC Holdings Pte Ltd Holdings Pte Ltd Singapore Golden Share Common Shares (100%) Japan TK contribution (97%) Preferred Share (49%) ISH Yuri ISH Yuri 3 Preferred Share (51%) Common Share (100%) Godo Kai
Slide 6: Rationale for and Benefits of the Proposed Acquisition
Rationale for and Benefits of the Proposed Acquisition Strategic Entry into Japan 1 Third largest data centre market in Asia Pacific Further Rejuvenates and Rebalances MIT’s Portfolio 2 High-quality modern data centre strategically located in downtown Osaka Enhances Income Stability of the Enlarged
Slide 7: Strategic Entry into Japan
1 Strategic Entry into Japan Maiden acquisition in Japan, the third largest APAC data centre market With >3,000 MW of total IT load1, Japan is among the most developed data centre markets in APAC Data centres concentrated in Greater Tokyo (77%1) and Greater Osaka (21%1) APAC Data Centre Supply b
Slide 8: Strategic Entry into Japan (Osaka)
1 Strategic Entry into Japan (Osaka) Growing hyperscaler demand for Osaka as a key alternative hub to Tokyo Separate Cloud Region to Tokyo Total MW per Million Capita1,2 2023-27E Take-up CAGR1,3 Many cloud service providers only have one availability zone in Osaka 184.5 14% Growth potential as c
Slide 9: Further Rejuvenates and Rebalances MIT's Portfolio
2 Further Rejuvenates and Rebalances MIT’s Portfolio Enlarges presence in the growing data centre sector Increases MIT’s exposure to data centres from 53.7%1,2 to 56.3%1,3 Increases MIT’s exposure to APAC data centres from 3.4%1,2 to 8.7%1,3 Pre-Acquisition: Portfolio Breakdown by Asset Type1 Po
Slide 10: Further Rejuvenates and Rebalances MIT's Portfolio
2 Further Rejuvenates and Rebalances MIT’s Portfolio High-quality, modern data centre strategically located in downtown Osaka High-Quality Modern Data Centre Shin-Osaka Sta. Newly completed data centre Tier III+ equivalent1 data centre with sufficient redundancy to support mission critical needs
Slide 11: Enhances Income Stability of the Enlarged Portfolio
3 Enhances Income Stability of the Enlarged Portfolio WALE of ~20 years1 improves lease expiry profile Portfolio WALE will increase from 3.9 years2 to 4.5 years3 Proportion of leases expiring in FY28/29 and beyond will increase from 28.1%2 to 30.5%3 Pre-Acquisition: Lease Expiry Profile2 Post-Ac
Slide 12: Enhances Income Stability of the Enlarged Portfolio
3 Enhances Income Stability of the Enlarged Portfolio 100% leased to an established data centre operator Diversifies MIT’s tenant base and reduces the exposure to any single tenant from 5.9%1 to 5.7%2 Net lease structure with minimal landlord operational obligations Pre and Post-Acquisition: Top
Slide 13: Enhances Income Stability of the Enlarged Portfolio
3 Enhances Income Stability of the Enlarged Portfolio Extends lease expiry of underlying leasehold land from 35.3 years1,2 to 35.4 years1,3 The Property has 70-year land lease commencing from 1 Oct 2020 Freehold land will continue to make up the majority of MIT’s Portfolio at 65.6%1 Remaining Ye
Slide 14: DPU and NAV per Unit Accretive
4 DPU and NAV per Unit Accretive 2.1% DPU accretive1 and 0.5% NAV per Unit accretive2 Distribution Per Unit (Singapore cents)1 Net Asset Value Per Unit (S$)2 13.85 +2.1% +0.5% 1.86 1.85 13.57 FY22/23 Pro Forma FY22/23 As at 31 March 2023 Pro Forma as at 31 March 2023 2 after Proposed Acquisition 1 a
Slide 15: Leverages Sponsor's Strong Support and Broad Platform
5 Leverages Sponsor’s Strong Support and Broad Platform Sponsor owns and manages S$78.7bn1 globally, including S$4.4bn in Japan Sponsor, Mapletree Investments, is a global real estate development, investment, capital and property management company with presence across APAC, Europe, the UK and Nor
Slide 16: Pro Forma Financing
Pro Forma Financing Post-acquisition, MIT’s pro forma aggregate leverage increases from 37.4% to 38.7%1 For Illustrative Purposes Funding Requirements Total = S$505.9m Effective Consideration2 S$500.1m Equity S$195.7m Net proceeds from Private Placement Transaction Cost3 S$0.8m Net Additional Debt A
Slide 17: Conclusion
Conclusion Growth through accretive acquisitions and developments Part of MIT’s Asset Rejuvenation of existing assets via asset enhancements and redevelopments Rejuvenation and Rebalancing Strategy Strengthening balance sheet through diverse sources of equity and debt funding and divestments o
Slide 18: End of Presentation
End of Presentation For enquiries, please contact Ms Melissa Tan, Director, Investor Relations, DID: (65) 6377 6113, Email: melissa.tanhl@mapletree.com.sg
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