Mapletree Logistics Trust acquires Mapletree Wuxi Logistics Park

MAPLETREE Logistics Trust (MLT) is set to acquire Mapletree Wuxi Logistics Park in China for RMB116 million from its sponsor Mapletree Investments. The acquisition is subject to the execution of a formal sale and purchase agreement between the two parties. The acquisition is in line with MLT's investment strategy to expand its presence in China and will be the third property that MLT has acquired from its sponsor's development pipeline.

Mapletree Wuxi Logistics Park is located in Wuxi New District, close to Wuxi Sunan Shuofang International airport and is served by highways and railways, connecting it to cities within the Jiangsu and Zhejiang provinces. The logistics development sits on a 731,952 sq ft leasehold land, with a total GFA of 484,380 sq ft. It contains a good mix of local and international companies including Wuxi Hi-Tech, Kerry Logistics, Fiege International Freight Forwarder and Konoike Logistics.

The acquisition is expected to generate an initial net property income yield of approximately 8%, higher than the implied property yield of 6% for MLT's existing China portfolio. It will be funded by debt and will be completed by March 2013. Upon completion, MLT's gearing ratio will be 37.3%, with portfolio increased to 111 properties with a book value of S$4.2 billion.

This story first appeared in The Edge Singapore weekly edition of Dec 10-16, 2012.

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