Real estate investment trust (REIT) Mapletree Industrial Trust has acquired a data center in Tokyo, Japan.

It has bought the mixed-use facility which comprises a data center, back office, training facilities, and an adjacent accommodation wing in Tokyo.

MIT tokyo buy
Mapletree buys Tokyo facility – Mapletree Industrial Trust

The purchase was JPY14.5 billion ($99.5m) for a 98.47 percent interest in the property via an agreement with Nagayama Tokutei Mokuteki Kaisha. It is to be paid for through mostly Yen-dominated borrowings and is expected to close in Q4 2024.

Set on 91,200 square feet (8,470 sqm) in the Tama-shi area of the capital’s western Tama district, the 319,300 sq ft (29,664 sqm) multi-story property is fully leased to an “established Japanese conglomerate” with a weighted average lease to expiry of approximately five years.

MIT also said the property presents a future redevelopment opportunity for a new data center.

Ler Lily, CEO of Mapletree Industrial Trust, said: “The addition of a freehold property will improve the portfolio’s geographical and income diversification. Its strategic location in West Tokyo, a key data center cluster in Greater Tokyo, will present a future redevelopment opportunity for a new data center. The future redevelopment will benefit from the robust demand for data centers as well as tight supply and limited development opportunities in West Tokyo.”

MIT owns data centers across the US and in Singapore. Mapletree Investment built a data center in Hong Kong in 2021. The firm acquired a facility in Osaka last year, marking its entry into Japan’s data center market.

Mapletree Industrial Trust is part of Mapletree Investments, which is owned by Singapore’s sovereign wealth fund Temasek Holdings.

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