HNA sells Singapore warehouses to Mapletree Logistics Trust – Mingtiandi

A HNA Group Unit Agreed to Sell a Set of Five Singapore Warehouses to Mapletree Logistics Trust for $ 730 million According to an announcement made by Mapletree on July 5, the Chinese conglomerate CWT International would sell the 3.2 million square feet (297,000 square meters) of storage space at a rate of 3, 3 percent ($ 535 million) less than seven months after the acquisition of assets. The shortage of HNA is a $ 100 billion gain.

HNA Pain Becomes Mapletree's Gain

"This acquisition will strengthen MLT's position as one of the largest suppliers of modern specification warehouse space in Singapore" said Ng Kiat, managing director of Mapletree Logistics Trust Management in a statement. "The total gross area of ​​our Singapore portfolio will increase by almost 20% to over 20 million square feet, which will allow us to benefit from Singapore's continued growth as a global hub."

December, as part of the acquisition of CWT Group, Singapore's logistics and commodities company, $ 1 billion, while HNA gets $ 535 million in cash, Mapletree Logistics Trust gets a long-term lease for its new assets. assets of the trust registered under the sales contract. The warehouses have weighted average leases of 8.7 years and are expected to return Mapletree unitholders an initial net return of approximately 6.2%. The transaction is expected to be completed in September

Sale of the latest acquisitions of 2017

Shortly after the drying of 39 ink The CWT acquisition by HNA, the firesales of the Chinese conglomerate began. Since the beginning of the year, HNA has landed $ 2 billion in Hong Kong, an office tower in Sydney for $ 166 million, NH Hotels for $ 719 million and holdings in Hilton Worldwide, Deutsche Bank, 245 Park Ave and Park Hotels and Resorts

In early July, it was reported that HNA was seeking a loan against a property on the Peak, House 6 at Twelve Peak. The mainland company had bought the property in 2015 for HK $ 506 million ($ 64 million), making it one of the most expensive homes in Asia, if not in the world.

HNA is struggling with a debt that could have been 100 million dollars after storming the sector and accumulating assets over a frenetic period of three years.

Mapletree gets multilevel discounts in Singapore

The five properties are ramp warehouses located in three well-located clusters in Singapore, according to MLT. Included in the case is a 600,301 square foot GFA, the six-story structure at 5A Toh Guan East Road, which is close to the PSA International Terminals and Jurong Harbor. Another asset is a 7-storey, 638,777 square foot GFA temperature-controlled warehouse located at 6 Fishery Port Road, also close to PSA International and Fishery Port. The other three warehouses are in the Pandan region.

The properties are purchased by MLT at a discount of 3.3% compared to an independent valuation by Colliers International in June. They are leased to the seller for periods ranging from five to ten years and will generate an initial yield of 6.1% of the net property income (NPI).

The transaction significantly changes the portfolio of MLTs. After the transaction, the five HNA warehouses will generate 9.5% of MLT's gross business figure. Wesfarmer & # 39; s Group will be the second largest contributor in Australia, with 3.2% of MLT's post-transaction business figure.

The transaction also increases the company's exposure to Singapore. Prior to the acquisition, MLT generated 34.5% of its total business turnover in the country. After the acquisition, this number will increase to 41.4%. The second largest jurisdiction for revenue is Hong Kong, estimated at 21.9% after the acquisition. As a result of the operation, which will be completed in September, the total assets under management of MLT will reach 7.6 billion Singapore dollars.