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Mapletree Industrial Trust expands investment strategies to data centres

By Samantha Chiew

/ The Edge Singapore |

September 27, 2017 1:49 PM SGT

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SINGAPORE (Sept 27): DBS is maintaining its “buy” call on Mapletree Industrial Trust (MINT) with a target price of $1.94.

This follows the trust’s announcement on Tuesday that it will be expanding its investment strategy to include overseas income producing real estate and real estate-related assets used primarily as data centres.

The change in investment strategy will be effective from Oct 26, 2017.

MINT’s previous investments were primarily properties used for industrial purposes, such as business park buildings, flatted factories and general industrial buildings. The trust also currently has four data centres in Singapore under its portfolio.

In a media release issued on Tuesday, MINT’s manager, Mapletree Industrial Trust Management says that this demonstrates its focus on growing hi-tech buildings segment through extending its foothold in the fast-growing global data centre segment.

The trust’s manager has identified key target markets, which include gateway cities in Asia Pacific, Europe and US. The growth of data-centre real estates in these cities are supported by advanced infrastructure and global connectivity.

In a Wednesday report, analyst Derek Tan says, “Supported by strong government support (including intellectual property rights and data sovereignty) and a pro-business environment, we believe that there will be opportunities for MINT to establish a meaningful presence there.”

MINT estimates that overseas data centres could for close to 20% of aggregate asset under management (AUM), comprising $0.6 billion out of the trust’s AUM of $3.77 billion as of June 2017.

Units in MINT are trading 1 cent higher at $1.85 as at 10.25am.

This article, written by Samantha Chiew, appeared in The Edge Singapore.

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