Mapletree Pan Asia Commercial Trust Sells Mapletree Anson for $775 Million
In a strategic move to optimize its portfolio, Mapletree Pan Asia Commercial Trust (MPACT) has announced the divestment of Mapletree Anson, a prime office building located at 60 Anson Road, Tanjong Pagar, Singapore.
The commercial sale, valued at $775 million, marks a significant step in MPACT’s ongoing efforts to enhance its capital structure and financial resilience.
Completed in July 2009, the 19-storey Mapletree Anson boasts over 320,000 square feet of lettable space.
The property was recently valued at $765 million by independent valuer CBRE, using both the income capitalization method and discounted cash flow analysis.
The sale price represents a gain of $10 million, or 1.3%, over the building’s book value and valuation.
Additionally, the sale price is 14% higher than the $680 million MPACT originally paid for the property in 2013.
Financial Impact and Strategic Benefits
The estimated gain on disposal is about $3.8 million, and the proceeds from the sale are earmarked for debt reduction.
This move is expected to lower MPACT’s aggregate leverage ratio from 40.5% to 37.6% on a pro forma basis, thereby strengthening its capital structure and financial resilience.
The manager of MPACT emphasized that the divestment of this non-core asset is a proactive and calculated step to optimize the portfolio.
The transaction is anticipated to deliver approximately 1.5% accretion to distribution per unit for the financial year 2023/2024 on a pro forma basis.
Strong Performance and Future Prospects
Mapletree Anson has been a high-performing asset, generating gross revenue of $37.2 million and a net property income (NPI) of $29.3 million for the financial year ended March 31, 2024.
With a committed occupancy rate of 100% and a weighted average lease expiry by gross rental income of 3.8 years, the commercial property has been a stable income-generating asset for MPACT.
Upon the completion of this divestment, MPACT’s portfolio will comprise 17 commercial properties across five markets in Asia.
This strategic sale positions MPACT favorably for future growth, providing greater financial flexibility for potential acquisitions and investments.
The sale of Mapletree Anson is a testament to MPACT’s commitment to enhancing shareholder value through strategic portfolio management.
By leveraging market conditions and taking proactive steps to optimize its portfolio, MPACT continues to strengthen its financial position and prepare for future opportunities.