Mapletree Logistics Trust to acquire 4 properties in Australia for S$152 mil

SINGAPORE (Dec 15): Mapletree Logistics Trust is set to expand further in Australia, with the proposed acquisition of a portfolio of four logistics properties in Victoria for a total of A$142.2 million (S$151.9 million or RM461.2 million).

Mapletree Logistics Trust Management, the Manager of MLT, announced on Thursday that the four properties will be acquired from Growthpoint Properties Australia.

They have a total gross floor area of 103,517 sq m on a combined land area of 362,230 sq m, and are currently 100% leased to leading Australian and multinational corporations.

Three of the four properties are sited in the prime logistics hub of western Melbourne, while the fourth is located in the regional city of Wodonga.

“With this acquisition, MLT will now own and manage a total of nine properties in Australia,” says CEO of the Manager, Ng Kiat.

“Besides providing a stable and growing income stream with a WALE of 6.4 years, this acquisition will also add four new quality tenants to our portfolio – Woolworths, Scott’s Refrigerated Freightways, Fuji Xerox and Bridgestone,” she adds.

The Manager says the proposed acquisition will enhance the geographical and income diversification of the MLT portfolio, and provide stable income stream with organic growth.

Following this acquisition, Australia will account for approximately 9.0% of MLT’s overall gross revenue, up from 6.1% currently.

“At the initial NPI yield of 7.6%, the acquisition will be accretive to MLT’s distribution,” Ng says.

Expected to be completed “within the next few days,” the acquisition will be funded via a combination of the remaining proceeds from the S$250 million (RM776.7 million) of perpetual securities issued in May 2016 as well as Australian dollar borrowings.

Units of Mapletree Logistics Trust closed flat at S$1.02 on Wednesday. — theedgemarkets.com.sg