Tuesday, July 5, 2016


MCT: (S$1.48) Favourable move towards business parks
- Acquiring an office tower and three business park blocks at Mapletree Business City (Phase 1) for $1.78b, or $1,042 psf NLA.
- Acquisition is priced at 5.6% NPI yield, and is accretive to DPU (+3.2%) and NAV (+2.1%).
- Funding will be via $920m debt, assumed at an interest cost of 3.25% per annum, as well as an issue of up to 795m new units (37% of existing unit base) via a placement.
- Maybank KE is positive on the deal, as the purchase will give MCT exposure to business parks, which will constitute 22% of its portfolio upon completion.
- MCT is valued at a pro forma 1.1x P/B and distribution yield of 5.8%.

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