MCT to acquire Mapletree Business City Phase 1 for $1.8 billion

It will snap up an office tower, three business park blocks.

Mapletree Commercial Trust has entered into a put and call option to acquire the office and business park components of Mapletree Business City (Phase 1) for a total consideration of $1.78 billion, the trust’s manager said in a statement.

Under the deal, MCT will acquire an office tower, MBC 10, as well as three business park blocks with a total net lettable area of over 1.7 million.

The acquisition price marks a 2.6% discount to the property’s current valuation of $1.85 billion. The deal will be funded with a combination of debt and equity.

Among the property's major tenants are multinationals including The Hongkong and Shanghai Banking Corporation, Samsung Asia, Unilever Asia and SAP Asia.

Upon the successful completion of the acquisition, MCT’s asset size will increase from the current $4.3 billion to $6.1 billion. It will contribute a net property income of 5.6% without any income support.