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SINGAPORE – Mapletree Logistics Trust plans to acquire five modern and early-stage logistics properties in Singapore from CWT and its affiliates for approximately $ 778.3 million.
The sum includes the purchase price of $ 730 million and the original estimated land premium for the terms of the lease contract payable to JTC Corporation of $ 48.3 million
Acquisitions, which are for five to ten years, are subject to the approval of JTC and the shareholders of CWT. International
The properties comprise five start-up warehouses located in the western part of Singapore, with a total gross area of approximately 3.2 million square feet and a weighted average age of 4.8 years. The price of $ 730 million represents a discount of about 3.3 percent to the $ 755.2 million independent valuation as of June 27 by Colliers International Consultancy & Valuation.
Ng Kiat, Managing Director of Mapletree Logistics Trust Management, said: This acquisition will strengthen MLT's position as one of the largest providers of modern specification warehouse space in Singapore The total gross area of our Singapore portfolio will increase by almost 20% to over 20 million square feet. global logistics center. "
Mapletree pointed out that the proposed acquisition is in line with its strategy of acquiring modern logistics facilities.At the same time, this will allow the manager to focus on the following. other areas such as "selective divestiture of old low-yielding properties with limited redevelopment potential" to protect the rental yield of its portfolio.
lease expiry of 8.7 years and the increase in rents integrated by 1.5% per year, acquisitions should generate an initial net return of property income of about 6.2%, based on the purchase price of 778.3 million is in the process of reviewing various financing options for the purchase, including the proceeds of a capital raising, the proceeds of divestitures and / or potential liabilities, has he added.The deal should be concluded by September, after which the asset to Mapletree's managed investment will increase to approximately $ 7.6 billion
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