Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Mapletree REIT to Acquire Google APAC HQ in S$1.55B Singapore Biz Park Buy

2019/09/28 by James Hatton Leave a Comment

Google has its APAC HQ in phase 2 of Mapletree Business City

The manager of Mapletree Commercial Trust has agreed to acquire Google’s Asia Pacific headquarters in Singapore as part of a S$1.55 billion ($1.14 billion) purchase of four buildings in the city’s Pasir Panjang area.

Mapletree Commercial Trust Management, in an announcement to the Singapore stock exchange on Friday, said that it had agreed to acquire the second phase of the Mapletree Business City office development from the trust’s sponsor, Mapletree Investments, in a move which adds 1.2 million square feet (111,484 square metres) of office space to the Singapore-listed REIT’s portfolio.

Yardi Proptech Report 2022 New Technology_In Story

The announcement comes amid a flurry of acquisitions by Singapore-listed property trusts over the past month, including the $1.37 billion acquisition of a set of North American data centres by a separate Mapletree managed REIT less than two weeks ago.

Buying Half of the Largest Biz Parks in Singapore

Under the terms of the agreement, the trustee of the REIT and a subsidiary will acquire 100 percent of the equity in entities which hold the properties for a total cash consideration of S$884.9 million. At the purchase price, Mapletree Commercial Trust, which is managed by an affiliate of Mapletree Investments, is paying the equivalent of S$1,292 per square foot of lettable area in the asset, not taking into account fees, stamp duty or other costs.

With the set of properties valued at S$1.55 billion, Mapletree Commercial Trust is taking on responsibility for another S$665 million in debt associated with the assets, with the deal also carrying an acquisition fee of S$7.8 million payable to the REIT manager in units of the trust, as well as stamp duty and other professional fees of S$18.1 million.

The manager will finance the purchase through the net proceeds of a sale of to 500 million new units in the trust, with the balance to be funded by a drawdown of existing and new loans of up to an aggregate amount of S$800 million.

Mapletree Commercial Trust Management CEO Sharon Lim Hwee Li is pleased to have earned a management fee

While the structure and timing of the equity fund raising has yet to be determined, post-acquisition distributions per unit are forecast to increase 4 percent to 9.51 cents, and net asset value per unit is expected to increase 2.2 percent to S$1.65.

Selling Google’s Singapore Home

Completed in 2016, Mapletree Business City is one of the largest grade A office spaces in Singapore, with a net lettable area of just under 2.9 million square feet across its two phases.

Google recently relocated its Asia Pacific headquarters to the phase two of the project, taking up 680,000 square feet, equivalent to 57 percent of the overall net lettable area. Occupancy rate in the four building complex stands at 99.4 percent with a weighted average lease expiry of 2.9 years.

Based on an average passing rent of S$6.15 per square foot per month, the complex offers an annual rental income of roughly S$88,028,600, giving a gross yield of 5.6 percent, according to Mingtiandi calculations.

Zoned for use as a business park with a gross plot ratio of 2.8, the property’s 99-year leasehold is due to expire on 1 October 2096.

According to an investor presentation submitted to the stock exchange, the REIT manager highlighted the asset’s steady rental growth, low volatility, and high quality tenants as key acquisition reasons for the acquisition.

Singapore REIT Shopping Spree Continues

Amid favourable interest rates, Singapore real estate investment trusts have been on a shopping spree over the past month.

Just seven days ago, Manulife US REIT raised $142.7 million through a private placement and preferential offering to fund the acquisition of a grade A office building in California.

Data centre forum 2022 Web banner

Less than a week before that equity raise, in a joint announcement Mapletree Investments and Mapletree Industrial Trust announced that they had agreed to together acquire a portfolio of 13 data centres in North America from Digital Realty for $1.37 billion.

Just one day later, Keppel DC REIT announced that it was set to acquire a pair of Singapore data centres in a pair of transactions totalling S$585.1 million from two separate joint ventures invested by other divisions of Keppel Corporation.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: daily-sp, Featured, Google, highlight, Mapletree Business City, Mapletree Investments, Singapore REIT

Data centre forum 2022 Jumbo

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

Demographics and Demand Driving Asia Data Centre Investment Surge: MTD TV
Aussie Multi-Family
Australian BTR Set for Continued Growth After COVID Era Surge: MTD TV

More MTD TV Videos>>

People in the News

Gerald Yong CapitaLand
New Directors Named for Singapore’s SPH REIT After Cuscaden Takeover
jesline goh UOL
Jesline Goh Resigns as CIO of Singapore’s UOL as Developer Promotes Hotel Chief
Lee Hoon KIc
Asia Real Estate People in the News 2022-08-15
daigo Hirai BlackRock
Asia Real Estate People in the News 2022-08-08

More Industry Professionals>>

People in the News

New Directors Named for Singapore’s SPH REIT After Cuscaden Takeover

Gerald Yong CapitaLand

Following its takeover by Temasek Holdings-backed investment firm Cuscaden Peak on 30 June, the manager of SGX-listed … Read More>>

Jesline Goh Resigns as CIO of Singapore’s UOL as Developer Promotes Hotel Chief

jesline goh UOL

Jesline Goh is stepping down as chief investment and asset officer of Singaporean developer UOL Group after nearly five … Read More>>

Asia Real Estate People in the News 2022-08-15

Lee Hoon KIc

Senior personnel changes in Korea, Hong Kong and Singapore lead Mingtiandi’s roundup of HR moves from around the region … Read More>>

Asia Real Estate People in the News 2022-08-08

daigo Hirai BlackRock

BlackRock’s appointment of a new head of Japan real estate leads this week’s roundup of personnel moves from around the … Read More>>

More Industry Professionals>>

Latest Stories

Yang Guoqiang Country Garden
China’s Biggest Developer Country Garden Warns of 70% Profit Drop
fuwei-c-bridge-capital
Healthcare Investment Boss Said Buying Mansion in Singapore’s Bukit Timah For $33M
Gerald Yong CapitaLand
New Directors Named for Singapore’s SPH REIT After Cuscaden Takeover

Sponsored Features

Douglas Wu Fairland Holdings
How a Hong Kong Mall Repositioning Boosted Revenue by Focusing on Community
For Hong Kong’s Office Market, Border Reopening Holds Key to Unlocking Demand
Top 3 Trends Driving a Connected Experience in Commercial Real Estate

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.

  • This field is for validation purposes and should be left unchanged.