Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/mapletree-north-asia-commercial-trust" target="_blank" data-smartkarma-citation="entities:5127" rel="noopener">Mapletree North Asia Commercial Trust (MAGIC SP)</a> to acquire HP Tokyo HQ building for S$474.7m; DPU accretive by +2.4%</h3><ul><li>MAGIC has entered into an agreement to buy 98.47% effective interest in a freehold single-tenanted office building in Tokyo at an agreed property value of JPY38.8bn (S$474.7m). The property is now used as Hewlett-Packard Japan headquarters from Hulic Co, an unrelated third party vendor. The balance effective interest of 1.53% in the property will be held by Mapletree Investments Japan Kabushiki Kaisha, an indirect wholly-owned subsidiary of Mapletree Investments, MAGIC’s sponsor</li><li>The property is 100% leased to Hewlett-Packard Japan and has a lease expiry of 8.8 years. The AUM of the enlarged portfolio will stand at S$8.4bn, or an increase of 6% from existing portfolio of S$7.9bn. Contribution from Japan will increase from 16.6% to 21.3% by AUM, or an increase from 22.4% to 26.7% by NPI</li><li>MAGIC intends to finance the purchase and relevant costs through a combination of debt financing and issuance of perpetual securities. The estimated NPI yield is 3.7%. On a FY21 pro-forma basis, the acquisition is expected to be DPU accretive by +2.4%</li><li>Aggregate leverage post acquisition is expected to be 41.9%, up marginally from 41.5%. Completion is subject to the conditions being fulfilled and is expected to take place by 30Jun.</li></ul><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/210/110/original/image003.png?1622425518" class="editor-image img-responsive" data-smartkarma-image-id="210110"></figure></section>

SingaporeMapletree North Asia Commercial Trust (MAGIC SP) to acquire HP Tokyo HQ building for S$474.7m; DPU accretive by +2.4%MAGIC has entered into an agreement to buy 98.47% effective interest in a freehold single-tenanted office building in Tokyo at an agreed property value of JPY38.8bn (S$474.7m). The property is now used as Hewlett-Packard Japan headquarters from Hulic Co, an unrelated third party vendor. The balance effective interest of 1.53% in the property will be held by Mapletree Investments Japan Kabushiki Kaisha, an indirect wholly-owned subsidiary of Mapletree Investments, MAGIC’s sponsorThe property is 100% leased to Hewlett-Packard Japan and has a lease expiry of 8.8 years. The AUM of the enlarged portfolio will stand at S$8.4bn, or an increase of 6% from existing portfolio of S$7.9bn. Contribution from Japan will increase from 16.6% to 21.3% by AUM, or an increase from 22.4% to 26.7% by NPIMAGIC intends to finance the purchase and relevant costs through a combination of debt financing and issuance of perpetual securities. The estimated NPI yield is 3.7%. On a FY21 pro-forma basis, the acquisition is expected to be DPU accretive by +2.4%Aggregate leverage post acquisition is expected to be 41.9%, up marginally from 41.5%. Completion is subject to the conditions being fulfilled and is expected to take place by 30Jun.

ASEAN Builder's Scoop (31May21) - MAGIC Acquires HP Tokyo HQ Building

Thailand

U City Public Company Limited develops property for sale and rental.  The Company offers land development, design, construction, project management administrative, and marketing services. U City provides apartment, condominium, hotel and commercial building properties.

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U City PCL (U TB)

ASEAN Builder's Scoop (31May21) - MAGIC Acquires HP Tokyo HQ Building

MAGIC acquires HP Tokyo HQ building; CIT is not pressured to sell assets; Keppel Land expands in HCM; Indo 1Q21 resi sales +14% YoY; EAST dips back...

SCCM Asia Research

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