Buildings : SII Makuhari Building & Fujitsu Makuhari Building
Location: Chiba prefecture, Japan.
Date : November 2018.
Mapletree Greater China Commercial Trust was listed in 2013
and managed overseas commercial properties in China and Hong Kong. Earlier this year, with the acquisition of
Japanese properties into its portfolio, it changed its name to Mapletree North
Asia Commercial Trust.
I started to took notice and then shortly thereafter took up a position. With the trade war with U.S and China at the
forefront, I reckon that a more diversified portfolio would be beneficial so
properties in Japan would be a good balance.
It would be better if they can get some South Korean commercial properties
but I think it is good to keep within 2- 3 countries as exchange rates maybe a
double edged sword.
Gearing ratio had increased to 39% (Sep 2018) from 36% ( Mar 2018) but I am not too concerned.
It is well under 45%; of which it is the requirement of SGX. Its interest rates is at about 2.5 % and 78%
of MNACT debt is of fixed interest rate so the impending rise of interest rates
in the coming year should be well cushioned.
NPI contribution for the Japanese properties stood at a meagre 8% when
compared to its China and Hong Kong properties. I think it will be poised for growth and
that is why I went to do a on the ground check.
SII Makuhari Building and Fujitsu Makuhari Buildings are separate by 2 buildings (Starts and Sharp buildings to be exact). They are located about 8 - 10 minutes walk
from Kaihimmakuhari station.
Basically it is office area so you won’t see residential place near by. There are eateries, shops, amusement park and
a cinema inside a mall next to the station. As these buildings housed the same
company, I don’t forsee units being further lease out. The WALE is 5.2 years and it is much better
than the China and Hong Kong ones. The
occupancy rate thus is 100%.
One of the few things that Japan did somewhat better than Singapore is the
accessibility between buildings. Besides
walking on the pedestrian level ( same as car, bus etc..), the buildings are
interconnected via open bridges and these walkway between bridges are huge. You may think as Japanese are time efficient people
and take about 20 min through and flow to commute for lunch is not too wasteful. Fret not, many if not all of the buildings
have a staff canteen in the office building and some of them order in if the
schedule is tight.
Makuhari area is in Chiba prefecture, it is close to Narita airport. Coming in from Tokyo will take you about 28
minutes. It seems that MNACT is growing
its presence in Makuhari area. Why?
As I was walking down, I saw Baypoint but I do not recall it being listed in
their slides previously.
Could it be a new acquisition? Btw, the
Baypoint is a 26 storey office building.
As my foray into the counter only started this year, my price isn’t that attractive
as compared to those who bought earlier.
I made an entry when the technicals were showing a bit of weakness and
added a bit more recently. With a high
yield of more than 6% and P/NAV less than 1, my quarterly dividend is in the
high 3 digits, I will continue to hold this for dividend income.
Finally, before heading back to Tokyo, I had a bowl of yummy oyster noodles.
If you like to read on my previous overseas post on Starhill
Global Reit, you can visit the link