Strategic Locations Across Singapore and the United States
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MAPLETREE INDUSTRIAL TRUST ANNUAL REPORT 2017/2018 FOCUS • SUSTAINABILITY • GROWTH Strategic Locations across Singapore and the United States Mapletree Industrial Trust’s diverse property portfolio comprises 85 industrial properties in Singapore across 42 clusters and 14 data centres in the United States (40% interest through the joint venture with Mapletree Investments Pte Ltd). SINGAPORE UNITED STATES CausewayCAUSEWA toY MalaysiaTO MALAYSIA 36 38 41 40 32 10 WOODLANDS RWoodlandsEGIONAL CENTRegionalRE Centre Wisconsin Michigan 56 47 Pennsylvania New Jersey 27 28 51 48 Loyang 7Se5rangoon Loyang North 16 17 Serangoon North TampinesTAMPINES 26 27 TTuasUAS RegionalREGIONAL SECOND Jurong Lake 5 2 CentreCENTRE 2 Airport Second JURONG LAKE Toa Payoh 37 12 AIRPORT LLinkINK DistrictDISTRICT North Kampong 29 2 42 Toa Payoh23 31 24 AKampongmpat 8 ChangiChangi North 33 11 NorthNorth 9 Ampat 4 34 21 North Carolina 13 12 14 KKakiaki B Bukitukit 23 15 40 22 33 38 California 34 ChangiChangi 39 49 50 36 35 Kolam25 41 KampongKampong 35 37 3 KolamAyer 14 1 BusinessBusiness CleClementimenti Ayer 24 UbiUbi ParkPark 43 52 Tennessee 13 West 11 InternationalInternational West 5 Business Park 7 15 Chai Chee Lane Business Park 17 6 Chai Chee Lane 6 8 16 39 4 18 20 TTanglinanglin 9 KallangKallang Georgia one-northone-north 10 HHaltalt 19 20 BasinBasin 26 30 Tiong 44 45 3 Redhill Bahru Seaport Redhill Tiong SEAPORT Bahru 18 19 46 28 29 21 22 31 32 CENTRAL Telok 30 Central BlangahTelok AreaAREA Texas Blangah 1 53 55 SeaportSEAPORT SSeaportEAPORT 54 Key Commercial Centres Major Expressways Property Clusters1 HI-TECH BUILDINGS FLATTED FACTORIES BUSINESS PARK BUILDINGS HI-TECH BUILDINGS4 1 1 & 1A Depot Close 11 Chai Chee Lane 23 Kolam Ayer 1 35 The Signature CALIFORNIA NEW JERSEY TEXAS 2 19 Tai Seng Drive 12 Changi North 24 Kolam Ayer 2 36 The Strategy 43 7337 Trade Street, San Diego 48 2 Christie Heights, Leonia 53 1221 Coit Road, Plano 3 26A Ayer Rajah Crescent 13 Clementi West 25 Kolam Ayer 5 37 The Synergy 54 3300 Essex Drive, Richardson 4 30A Kallang Place 14 Kaki Bukit 26 Loyang 1 GEORGIA NORTH CAROLINA 55 5000 Bowen, Arlington 5 K&S Corporate Headquarters 15 Kallang Basin 1 27 Loyang 2 44 180 Peachtree, Atlanta 49 1805 Center Park Drive, Charlotte 6 Mapletree Sunview 12 16 Kallang Basin 2 28 Redhill 1 STACK-UP/RAMP-UP BUILDINGS 45 1001 Windward Concourse, 50 5150 McCrimmon Parkway, WISCONSIN 7 Serangoon North 17 Kallang Basin 3 29 Redhill 2 Alpharetta Morrisville 56 N15W24250 Riverwood Drive, 8 STT Tai Seng 13 18 Kallang Basin 4 30 Tanglin Halt 38 Woodlands Spectrum 1 & 2 46 2775 Northwoods Parkway, Atlanta Pewaukee 9 Toa Payoh North 1 19 Kallang Basin 5 31 Tiong Bahru 1 PENNSYLVANIA 10 Woodlands Central 20 Kallang Basin 6 32 Tiong Bahru 2 LIGHT INDUSTRIAL BUILDINGS MICHIGAN 51 2000 Kubach Road, Philadelphia 21 Kampong Ampat 33 Toa Payoh North 2 47 19675 W Ten Mile Road, Southfield 22 Kampong Ubi 34 Toa Payoh North 3 TENNESSEE 39 19 Changi South Street 1 52 402 Franklin Road, Brentwood 40 26 Woodlands Loop 41 45 Ubi Road 1 42 2A Changi North Street 2 1 A property “cluster” consists of one or more individual buildings situated on the same land lot or adjoining land lots. 2 It was previously known as Mukim 06 Lot 00869CPT, which is under development as a six-storey BTS data centre. 3 It was previously known as Tata Communications Exchange and renamed as STT Tai Seng 1 following the novation of lease from Tata Communications 4 Relates to MIT’s 40% interest of the joint venture with Mapletree Investments Pte Ltd in a portfolio of 14 data centres in the United States through International Pte. Ltd. to STT Tai Seng Pte. Ltd.. MRDCT. 30 31 MAPLETREE INDUSTRIAL TRUST ANNUAL REPORT 2017/2018 FOCUS • SUSTAINABILITY • GROWTH Operations Review GAINING MOMENTUM IN GROWING MIT completed its largest BTS project for HP at 1 & 1A the vendor, Mapletree Logistics Trust. MIT will be upgrading THE HI-TECH BUILDINGS SEGMENT Depot Close in June 2017. HP is committed to lease the the seven-storey property into a Hi-Tech Building. Subject entire purpose-built facility for a minimum lease term of to the approval of JTC Corporation and relevant authorities In October 2017, the Manager marked a milestone in 10.5 years, with annual rental escalations and an option to and upon the completion of the upgrading works in the its strategy to grow the Hi-Tech Buildings segment with renew for two additional five-year terms. With a GFA of over second half of 2019, the Hi-Tech Building will be fully the first overseas portfolio acquisition of 14 data centres 824,500 sq ft, the two Hi-Tech Buildings comprise facilities leased to an established information and communication in the United States via a 40:60 joint venture with the for manufacturing, product and software development as technology company for an initial lease term of 25 years Sponsor. Strategically located in established data centre well as an office. with annual rental escalations. The total cost of the markets across the United States, the properties are sited proposed acquisition and upgrading works is estimated to be on freehold land with a total NLA of 2.3 million sq ft. The The AEI at 30A Kallang Place was completed in February S$95 million2. properties are primarily core-and-shell data centres on 2018. Adding approximately 336,000 sq ft of GFA to triple net leases, which are leased to high-quality tenants the portfolio, the leasing interest for the new 14-storey These concerted efforts are consistent with our strategic from diverse industries. The US Acquisition is in line with Hi-Tech Building, 30A Kallang Place has been positive, with focus to grow the Hi-Tech Buildings segment. As at 31 the expansion of MIT’s investment strategy to acquire data commitment secured for 40.2% of the total NLA. March 2018, the Hi-Tech Buildings segment represented centres worldwide beyond Singapore. New 14-storey Hi-Tech Building, 30A Kallang Place. the largest property segment at 37.7% of the portfolio by The BTS data centre development, Mapletree Sunview 1 valuation, up from 14.8% five years ago. Through an unlisted single purpose trust, MRDCT, MIT and is on track for completion in the second half of 2018. The PORTFOLIO OVERVIEW the Sponsor acquired the portfolio of 14 data centres (the “US six-storey purpose-built data centre with a GFA of about Portfolio”) for a purchase consideration of US$750 million 242,000 sq ft will be fully leased to an established data PROPERTY PORTFOLIO STATISTICS from Carter Validus Mission Critical REIT, Inc., through its centre operator for an initial lease term of more than 10 controlled subsidaries and affiliates. This was 3.4% lower years with staggered rental escalations and renewal options. As at 31 March 2018 As at 31 March 2017 than the independent valuation of US$776.4 million1 provided by Cushman & Wakefield Western, Inc.. In April 2018, MIT announced the execution of a novation Number of properties 99 Properties 86 Properties agreement in respect of an option to purchase for an industrial 85 in Singapore, 14 in United States 86 in Singapore property located at 7 Tai Seng Drive with the Sponsor and NLA (million sq ft) 18.03 15.2 Portfolio valuation (S$ million) 4,321.44 3,748.7 Average portfolio occupancy for FY17/18 (%) 89.64 92.4 MIT’s diverse portfolio comprises 85 properties in Singapore and 14 data centres in the United States, which accounted for 90.4% and 9.6% of the portfolio valuation respectively as at 31 March 2018. PORTFOLIO VALUE (BY SEGMENT) 1.7% 2.6% 10.8% 12.1% 28.8% 13.2% PORTFOLIO VALUE 37.7% PORTFOLIO VALUE 15.1% S$4,321.4 S$3,748.7 Million Million As at 31 March 2018 As at 31 March 2017 36.6% 41.4% Hi-Tech Flatted Business Park Stack-Up/Ramp-Up Light Industrial Buildings Factories Buildings Buildings Buildings 180 Peachtree, Atlanta is among the portfolio of 14 data centres acquired in the United States via a 40:60 joint venture with the Sponsor. 2 Includes the purchase consideration of S$68.0 million. 3 Excludes the parking decks (150 Carnegie Way and 171 Carnegie Way) at 180 Peachtree, Atlanta. 1 The US Portfolio was valued at US$776.4 million based on valuations of the 14 data centres conducted in August and September 2017, using the 4 Based on MIT’s 40% interest of the joint venture with Mapletree Investments Pte Ltd in a portfolio of 14 data centres in the United States through income capitalisation and sales comparison methods. MRDCT. 32 33 MAPLETREE INDUSTRIAL TRUST ANNUAL REPORT 2017/2018 FOCUS • SUSTAINABILITY • GROWTH Operations Review MIT’s portfolio of 85 properties in Singapore (the “Singapore Portfolio”) are strategically located in established industrial estates and The portfolio lease expiry profile is well-staggered with no more than 25% of the leases (by gross rental income) due business parks, which are well-served by public transportation networks and offer convenient access to amenities. The Singapore for expiry in any year. About 18.0% of the leases will be expiring in FY18/19, with no concentration risk of lease expiry Portfolio was valued at S$3,908.3 million as at 31 March 2018 by Knight Frank Pte Ltd. This represented an overall increase of in any property segment or property. The Manager adopts a proactive leasing strategy by engaging tenants for renewal S$159.7 million over the previous valuation of S$3,748.7 million as at 31 March 2017.