In his view, the variance in valuation was largely due to a “change in use” for the property given MIT’s plan to convert it from a warehouse building into a high-specification industrial building – which points to the likely repositioning of the warehouse into a data centre.
SINGAPORE (Apr 30): DBS Vickers Securities is maintaining its “buy” call on Mapletree Industrial Trust (MIT) with a target price of $2.22, which has yet to price in the REIT’s potential acquisition of a warehouse at 7 Tai Seng Drive for $68 million from Mapletree Logistics Trust (MLT).
In a Monday report, DBS lead analyst Derek Tan highlights that the property was valued at $69 million by independent valuers Cushman & Wakefield and Savills, which was notably higher than the valuation of $36.1 million on MLT’s books.
