Mapletree Industrial Trust : to Acquire 18 Tai Seng in Singapore for S$268.3 million

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

PRESS RELEASE

Mapletree Industrial Trust to Acquire 18 Tai Seng in Singapore for S$268.3 million

•  Addition of a unique integrated industrial development with office and retail spaces

•  Sole property in Paya Lebar iPark with underground pedestrian link to Tai Seng MRT station

•  Proposed Acquisition expected to be distribution per Unit ("DPU") and net asset value ("NAV") accretive to Unitholders

13 December 2018 - Mapletree Industrial Trust Management Ltd., as manager (the "Manager") of Mapletree Industrial Trust ("MIT"), is pleased to announce that DBS Trustee Limited, in its capacity as trustee of MIT (the "Trustee"), has entered into a conditional unit purchase agreement with Mapletree Tai Seng Pte. Ltd., an indirect wholly-owned subsidiary of Mapletree Investments Pte Ltd ("MIPL"), to acquire all the units of Marina Trust, which holds 18 Tai Seng located at 18 Tai Seng Street, Singapore (the "Property") at an agreed property value of S$268.3 million (the "Proposed Acquisition").

The Property is a nine-storey high-specification mixed-use development with a total gross floor area of about 443,810 square feet ("sq ft"), which comprises Business 2 industrial, office and retail spaces. Centrally located in the Paya Lebar iPark, the Property has prominent frontage along the busy Upper Paya Lebar Road and enjoys accessibility via major expressways (Kallang-Paya Lebar Expressway, Pan-Island Expressway and Central Expressway). The Property is directly connected to Tai Seng MRT station (CC11) by an underground link, which enhances pedestrian connectivity for the community at the Paya Lebar iPark.

Mapletree Industrial Trust Management Ltd.

10 Pasir Panjang Road #13-01 Mapletree Business City, Singapore 117438 tel [phone] fax [phone]www.mapletreeindustrialtrust.comCo. Reg. No. 201015667D

Mr Tham Kuo Wei, Chief Executive Officer of the Manager, said, "This is a rare opportunity to acquire a unique integrated industrial development in the modern Paya Lebar iPark. With its excellent connectivity as well as a wide variety of food and beverage offerings and amenities, 18 Tai Seng is a choice location for tenants who are looking for high quality business space in the city fringe. The Proposed Acquisition marks another milestone in our strategy to grow the Hi-Tech Buildings segment. Following the acquisition, MIT's total assets under management will increase from S$4.4 billion1 to S$4.7 billion, with the Hi-Tech Buildings segment accounting for 42.7% (up from 39.2%1)."

With a high committed portfolio occupancy of 94.3%2, the Property is leased to 44 high-quality tenants, including multinational companies in high value-added sectors such as medical technology, information and communications technology and automotive technology. Built-in annual rental escalations are included in 95.7%3 of leases (by gross rental income). The Property has a weighted average lease to expiry of about 3.6 years3,with 78.0%3 of leases expiring in Financial Year 2022/2023 and beyond. Following the acquisition, the gross rental income contribution by the top 10 tenants will decrease from 26.3% to 25.8% with an enlarged portfolio. These will enhance the income stability and diversification for the MIT portfolio.

Completed on 1 November 2016, the Property was developed to high specifications by MIPL.

The Property offers businesses the flexibility in designing efficient work spaces through large column-free floor plates of over 50,000 sq ft and 20-metre core-to-window depth. The Property was conferred the Green Mark Gold Award by the Building and Construction Authority for its sustainable environment design and features.

The total acquisition outlay is about S$271.0 million4. MIT has sufficient capacity to fully finance the Proposed Acquisition through debt. Depending on the market conditions, MIT may

• 1 As at 30 September 2018 and included MIT's 40% interest of the joint venture with MIPL in a portfolio of 14 data centres in the United States of America through Mapletree Redwood Data Centre Trust.

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

• 3 As at 30 September 2018.

• 4 Refer to the announcement dated 13 December 2018 titled "The Proposed Acquisition of 18 Tai Seng, Singapore" for details.

consider a combination of debt and equity. The Proposed Acquisition is expected to be DPU and NAV accretive to MIT unitholders5.

The agreed property value of S$268.3 million for the Property represents a 0.6% discount to the independent valuation conducted by Savills (Singapore) Pte Ltd ("Savills") and is in line with the independent valuation conducted by Colliers International (Singapore) Pte Ltd ("Colliers"). Savills (commissioned by the Manager) and Colliers (commissioned by the Trustee) have valued the Property at S$270.0 million and S$268.3 million respectively6 as at 30 November 2018.

As MIPL is a "controlling unitholder" of MIT and a "controlling shareholder" of the Manager under the listing manual of the Singapore Exchange Securities Trading Limited and Property Funds Appendix, the Proposed Acquisition will constitute an "interested person transaction"

(for the purposes of the Listing Manual) and an "interested party transaction" (for the purposes of the Property Funds Appendix). Accordingly, the Proposed Acquisition is subject to the approval of MIT's Unitholders at an extraordinary general meeting, which will be held at an appropriate time.

• 5 Based on pro forma financial impact of the Proposed Acquisition for the financial year ended 31 March 2018. Refer to the announcement dated 13 December 2018 titled "The Proposed Acquisition of 18 Tai Seng, Singapore".

• 6 Both Savills and Colliers relied on the income capitalisation method and the discounted cash flow analysis to conduct the valuation and used the comparison method as a check.

18 Tai Seng, Singapore

Key Property Details

Address	18 Tai Seng Street, Singapore 539775
Land Area	126,799 sq ft
Gross Floor Area	443,810 sq ft
Net Lettable Area ("NLA")	384,212 sq ft Industrial: 283,703 sq ft Office: 53,441 sq ft Retail: 47,068 sq ft
Land Tenure	30 years commencing from 26 March 2014
Plot Ratio	3.5 Business 2 Industrial: 2.5 White: 1.0
Average Passing Rental Rates (As at 30 September 2018)	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
Number of Tenants	44
Top 3 Tenants (By Gross Rental Income as at 30 September 2018)	1. Sivantos Pte. Ltd. 2. Silicon Laboratories International Pte. Ltd. 3. Schaeffler (Singapore) Pte. Ltd. ("Schaeffler") 7
Car Park Lots	190
Building Completion Date	Temporary Occupation Permit obtained on 1 November 2016

7 On 9 July 2018, Schaeffler entered into a lease agreement with the Property Manager 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.