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MAPLETREE Logistics Trust (MLT) has acquired Mapletree Logistics Park Phase 2 (MLPP2) in the Vietnam-Singapore Industrial Park II located in Binh Duong Province, Vietnam, for 339.2 billion dong (S$20.6 million).
In an announcement on Friday, MLT Management said that this is MLT's third property in Vietnam. The acquisition is in line with MLT's investment strategy to strengthen its portfolio and enhance returns through the acquisition of "quality and strategically located assets".
According to MLT, Binh Duong province is one of Vietnam's top investment destinations. MLPP2 is also 100 per cent leased - to mostly international companies including Kubota Corporation, DKSH, Detmold Packaging, Crown Worldwide, Swisstec Sourcing and Makita Corporation. The acquisition is expected to generate an initial net property income yield of 9.9 per cent, MLT added.
MLT said that the acquisition will be funded by proceeds raised from the S$250 million perpetual securities issued in May.
It added that following the completion of the acquisition, MLT's aggregate leverage ratio will remain at about 37.4 per cent while its total portfolio will comprise 124 properties with a book value of S$5.3 billion.