Mapletree Industrial Trust’s 3rd-largest tenant enters Chapter 11 bankruptcy process
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As at March 2023, the tenant contributed about 3.2 per cent of MIT’s monthly gross rental income.
ST PHOTO: KUA CHEE SIONG
Varun Karthik
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SINGAPORE - Mapletree Industrial Trust’s (MIT) third-largest tenant has initiated a pre-arranged court-supervised process under Chapter 11 of the US Bankruptcy Code, the trust’s manager announced in a bourse filing on Tuesday.
During a Chapter 11 proceeding in the United States, the court will help a business restructure its debts and obligations. In most cases, the company remains open and operating.
MIT said the affected tenant, a global co-location provider, had received a commitment for US$200 million (S$269.8 million) in debtor-in-possession financing and intended to pay vendors.
The tenant occupies spaces in seven data centres held under the Mapletree Rosewood Data Centre Trust, a 50-50 joint venture between Mapletree Investments and MIT.
As at March 31, 2023, it contributed about 3.2 per cent of MIT’s monthly gross rental income.
This would dip to 3 per cent of MIT’s enlarged portfolio upon completion of its acquisition of a newly built data centre in Osaka, Japan.
MIT’s manager said the tenant has met its rental obligations for April and partially fulfilled its rental obligations for May 2023.
The manager added that it would be pursuing the balance of the rental obligations for May.
It added that it will continue to monitor the financial status of the tenant.
MIT’s manager also said that “MIT has a large and well-diversified tenant base across 141 properties in North America and Singapore that underpins the stability of its portfolio”.
As at end-March, MIT had more than 2,300 tenants, with the top 10 tenants accounting for 29.5 per cent of the portfolio’s monthly gross rental Income.
The counter was trading down one cent, or 0.5 per cent, at $2.21 as at 9.13am on Tuesday, after the announcement. THE BUSINESS TIMES
