The acquisition increases MIT’s exposure to data centres from 53.7% to 56.3%, with Asia-Pacific footrprint rising to 8.7% from 3.4% (based on end-March metrics). According to a presentation the acquisition 2.1% DPU accretive and 0.5% NAV per unit accretive, based on number of units in issue as at March 31, plus approximately 91.5 million new units issued from a private placement to raise $195.7 million and approximately 0.8 million new units for fees. The pro forma aggregate leverage would rise from 37.4% as at March 31 to 38.7%.
Separately, MIT's placement comprises 200 million units, priced between $2.16 and $2.212, at a discount of 1.5% to 3.8% to adjusted VWAP on May 24 May.
In an update, Goldman Sachs says the proposed property acquisition is within previous management guidance of portfolio rebalancing through a combination of acquisition, divestment and/or development, despite Japan being a new geography.
"Financially, we note that the pro forma DPU accretion of +2.1% is higher than recent CapitaLand Ascendas REIT's proposed transactions' accretion of +1.2-1.3%. This is partly driven by slightly higher gearing, and refinancing with lower cost JPY loans, without which the transaction would still be accretive at around +0.4-0.5% (according to management)," Goldman Sachs adds.
