Mapletree Logistics Trust to acquire Shah Alam warehouse for S$53.2m

SINGAPORE (June 29): The manager of Mapletree Logistics Trust (MLT) is acquiring a warehouse facility in Malaysia at a purchase consideration of RM160 million from its sponsor, Mapletree Investments.

Mapletree Logistics Trust Management says the acquisition of Mapletree Shah Alam Logistics Park offers an attractive net property income yield of 7.5% at the purchase consideration and is expected to be accretive at the distribution level.

Located within the Shah Alam Industrial Park, which is home to many multinationals and established logistics players, the property is connected to Kuala Lumpur city centre, Kuala Lumpur International Airport and Port Klang via the major highways.

Comprising three blocks of single storey multi-tenanted warehouses with mezzanine offices, the property has a total gross floor area of about 60,905 sq m and is designed with modern building specifications.

The property is 100% leased to a tenant base of mainly international third party logistics service providers, including XPO Worldwide, Pantos Logistics, Logwin Air & Ocean and YCH DistriPark. In turn, they are servicing customers from the e-commerce, electronics and electrical, and fast moving consumer goods sectors such as Zalora, Phillips, Puma, Karcher, LG, Coway, Ajinomoto, Diageo and Osram.

The acquisition will be funded by proceeds raised from the recent issuance of S$250 million of perpetual securities and is expected to be completed by November, subject to approval from the state authority.

After the acquisition is completed, MLT's aggregate leverage ratio will be 36.6% while its total portfolio will comprise 123 properties with a book value of S$5.2 billion. — theedgemarkets.com

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