Mapletree Industrial Trust : Circular - The Proposed Acquisition of 18 Tai Seng, Singapore

(Constituted in the Republic of Singapore pursuant to a trust deed dated 29 January 2008 (as amended))

MANAGED BY

MAPLETREE INDUSTRIAL TRUST MANAGEMENT LTD.

CIRCULAR DATED 4 JANUARY 2019

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.

Singapore Exchange Securities Trading Limited (the "SGX-ST") assumes no responsibility for the correctness of any of the statements made, opinions expressed or reports contained in this circular to unitholders of Mapletree Industrial Trust ("MIT", and unitholders of MIT, "Unitholders") dated 4 January 2019 (this "Circular"). If you are in any doubt as to the action you should take, you should consult your stockbroker, bank manager, solicitor, accountant or other professional adviser immediately.

If you have sold or transferred all your units in MIT ("Units"), you should immediately forward this Circular, together with the Notice of Extraordinary General Meeting and the accompanying Proxy Form in this Circular, to the purchaser or transferee or to the bank, stockbroker or other agent through whom the sale or transfer was effected for onward transmission to the purchaser or transferee.

CIRCULAR TO UNITHOLDERS IN RELATION TO THE PROPOSED ACQUISITION OF 18 TAI SENG, SINGAPORE WHICH IS AN INTERESTED PERSON TRANSACTION

IMPORTANT DATES AND TIMES FOR UNITHOLDERS
Last date and time for lodgement of Proxy Forms	19 January 2019 (Saturday) at 2.30 p.m.
Date and time of Extraordinary General Meeting ("EGM")	22 January 2019 (Tuesday) at 2.30 p.m.
Place of EGM	10 Pasir Panjang Road, Mapletree Business City, Town Hall - Auditorium, Singapore 117438

Independent Financial Adviser to the Independent Directors and Audit and Risk Committee of Mapletree Industrial Trust Management Ltd. in its capacity as manager of Mapletree Industrial Trust and to DBS Trustee Limited in its capacity as trustee of Mapletree Industrial Trust

DELOITTE & TOUCHE CORPORATE FINANCE PTE LTD

(Incorporated in the Republic of Singapore)

(Company Registration Number: 200200144N)

PROPOSED ACQUISITION OF 18 TAI SENG, SINGAPORE,

A UNIQUE NINE-STOREY MIXED-USE INDUSTRIAL DEVELOPMENT

As at 30 September 2018. As at the Latest Practicable Date, the committed occupancy rate of the Property was 94.3%, with all the committed leases to commence progressively up to 1 March 2019.

Address

Agreed property value

18 Tai Seng Street, Singapore 539775 S$268.3 million

Total acquisition outlay S$271.0 millionVendor Land area Land tenure Plot ratio GFA NLA

Mapletree Tai Seng Pte. Ltd. 126,799 square feet ("sq ft")

30 years commencing from 26 March 2014 3.5 (Business 2 Industrial: 2.5 & White: 1.0) 443,810 sq ft

384,212 sq ft

• - Industrial: 283,703 sq ft

• - Office: 53,441 sq ft

• - Retail: 47,068 sq ft

S$4.58 per square foot per month ("psf/mth")

• - Industrial: S$4.04 psf/mth

• - Office: S$5.15 psf/mth

• - Retail: S$7.64 psf/mth

3.6 years (by gross rental income) 87.4%

Newest mixed-use industrial development (completed on 1 November 2016) in Paya Lebar iPark

Large column-free floor plates of over 50,000 sq ft with core-to-window depth of 20 metres that offers businesses flexibility in designing efficient work spaces

Full-height windows offer natural lighting with double-glazed windows for insulation against noise and sunlight

Obtained BCA Green Mark Gold certification

CENTRALLY LOCATED IN THE PAYA LEBAR IPARK WITH AN UNDERGROUND

Mapletree18_Brochure_FINAL_RC9.indde5 ntrally located in the vibrant Paya Lebar iPark

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• - An industrial hub for lifestyle-related and light manufacturing industries

• - Proximity to mature housing estates like Hougang, Bedok and Toa Payoh

• - Retail and food and beverage outlets to enjoy healthy catchment from surrounding industrial buildings

MRT station

• - Sole property with a direct underground pedestrian link to Tai Seng MRT station (CC11)

• - Connected to key interchanges via the Circle Line

• - Flanked by major expressways (Kallang-Paya Lebar Expressway, Pan-Island Expressway and Central Expressway)

STABLE AND QUALITY CASH FLOW3S

Stable and Quality Cash Flows

Top 10 Tenants

Rental Income

(As at 30 Sep 2018)

Sivantos Pte. Ltd.

Silicon Laboratories International Pte. Ltd.	8.7%
Schaeffler (Singapore) Pte. Ltd.1	6.5%
AES Global Holdings Pte. Ltd.2	5.7%
Williams-Sonoma Singapore Pte. Ltd.	5.2%
NTUC Fairprice Co-Operative Ltd	2.6%
Junior Champs Educampus Pte. Ltd.	2.6%
Michael Page International Pte Ltd	2.6%
Hersing F&B Pte. Ltd.	1.8%
Fei Siong Food Management Pte. Ltd.	1.7%
Top 10 Tenants3	18

74.0%

DiversificDaitvieornsifaiccartoiosnsaTcraosdseTSraedcetoSresctors % of Gross

36.6%

Strong tenant base with established tenants

• - Leased to 44 high quality tenants

• - Enlarges tenant base to include multinational companies in high value-added services

• - High committed occupancy of 94.3%4 as at the Latest Practicable Date

Well-structured leases with embedded organic growth

- No significant industrial and office lease expirations in the next 3 years (commencing from 1 April 2019)

- Built-in annual rental escalations are included in 95.7% of the leases

LEASE EXPIRY PROFILE OF THE PROPERTY (BY GROSS RENTAL INCOME)

As at 30 September 2018

78.0% of leases expiring in FY22/23 & beyond, which enhance income stability

78.0%

20.5%

0.0%

1.2%

0.3%

FY18/19

FY19/20

FY20/21

FY21/22

FY22/23 & Beyond

Retail

OfficeIndustrial

WALE of the Property = 3.6 years

• 1 On 9 July 2018, Schaeffler (Singapore) Pte. Ltd. entered into a lease agreement to lease certain units of the Property from 1 March 2019 for a period of five years. The figure above is based on the committed lease of Schaeffler (Singapore) Pte. Ltd..

• 2 On 23 October 2018, AES Global Holding Pte. Ltd. entered into another lease agreement to lease certain units of the Property from 1 January 2019 for a period of three years and nine months. The figure above is based on the committed lease of AES Global Holding Pte. Ltd..

• 3 The table above excludes a telecommunications tenant which would have been the second largest tenant by gross rental income of the Property (but not contributing more than

  15% of the gross rental income of the Property) due to confidentiality.

• 4 The actual occupancy of the Property was 87.4% as at 30 September 2018. All committed leases will commence progressively up to 1 March 2019.

DPU AND NAV ACCRETIVE TO UNITHOLDERS

Assuming LTV 100.0%, 60.0% and 40.0% for illustrative purposes:

Expected to result in pro forma DPU accretion of 3.1%, 1.5% and 0.7% respectively Expected to result in pro forma net asset value per Unit of S$1.47, S$1.48 and S$1.49 respectively

Distribution per Unit Singapore cents

Net Asset Value per Unit S$

• 1 For the financial year ended 31 March 2018.

• 2 Assuming that (i) the Property had a portfolio occupancy rate of 94.3% for the entire financial year ended 31 March 2018 and all leases, whether existing or committed as at the Latest Practicable Date, were in place since 1 April 2017 and (ii) all tenants have paid their rents in full. MIT's expenses comprising borrow-ing costs associated with the drawdown of the loan to finance the Proposed Acquisition, the Manager's management fees, Trustee's fees and other trust expenses incurred in connection with the operation of the properties of MIT have been deducted.

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STRENGTHENS THE MIT PORTFOLIO

Pre-Acquisition 1

In Line with Strategy to Grow Hi-Tech Buildings Segment

Post-Acquisition 2

Hi-Tech Buildings segment accounted for

39.2% of the MIT portfolio

90.3% Singapore, 9.7% United States

Hi-Tech Buildings segment expected to increase to 42.7% 2 of MIT portfolio

90.9% Singapore, 9.1% United States

Light Industrial

Light Industrial

• 1 Based on MIT's book value of investment properties and investment properties under development as well as MIT's 40% interest in the joint venture with MIPL in a portfolio of 14 data centres in the United States of America as at 30 September 2018.

• 2 Assuming the Property was acquired on 30 September 2018.