Mapletree Logistics Trust (MLT) US$687M acquisition of international portfolio (including Australian assets)

Mapletree

Temasek-owned Mapletree Logistics Trust (MLT) US$687M acquisition of international portfolio (including Australian assets)

Mapletree Logistics Trust (MLT), a real estate investment trust sponsored by Temasek-owned Mapletree Investments, has agreed to acquire a portfolio of logistics properties from affiliates of CBRE Investment Management in Japan, South Korea, and Australia for SGD 913.6 million ($687 million). The acquisition will be partly financed through an SGD 200 million private placement of new units.

Mapletree Australia Acquisition
The MLT acquired portfolio includes a logistics centre located at 8 Williamson Road, New South Wales

 

The portfolio comprises four logistics assets in Greater Tokyo, each in Nagoya, Hiroshima, Seoul, and Sydney. Upon completion of the transaction, MLT’s gross floor area in Greater Tokyo, the Seoul metropolitan area, and Sydney will increase by 57%, 12%, and 43%, respectively.

According to MLT’s manager, the acquisition aims to rejuvenate the trust’s portfolio towards a “resilient and future-ready” state, with a high proportion of high-quality logistics properties. MLT also plans to pursue strategic initiatives, such as selective divestment of non-core assets to enable the recycling of proceeds into investments of modern-specifications logistics properties with higher growth potential.

Mapletree
Madam Ng Kiat, CEO of MLT’s acquisition vehicle.

The Japanese assets are under four years old and comprise 204,106 square meters of net lettable area. The agreed property value is JPY 66 billion ($500 million), representing a 3.8% discount to their independent valuation. The Seoul property, completed in 2020, has a net lettable area of 78,175 square meters and an agreed value of KRW 144.8 billion ($110 million), representing a 6.1% discount to formal valuation. The Sydney property, located at 8 Williamson Road in Ingleburn, features two separate facilities and has an agreed value of AUD 125.7 million ($84.3 million), representing a 2.6% discount to valuation.

MLT’s manager also disclosed that the trust is contemplating acquiring two logistics assets in eastern China’s Jiaxing for more than RMB 1 billion ($150 million). Additionally, MLT is considering a possible divestment in Hong Kong for HKD 590 million ($75.2 million). The trust has accepted a non-binding expression of interest bid from an unrelated third party to the prospective divestment in Hong Kong, which has nine assets. The parties have agreed to an exclusivity period ending on 18 May.

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