MAPLETREE Logistics Trust (MLT) has entered into a purchase agreement with an unrelated third party to divest its 73 Tuas South Avenue 1 property for S$16.8 million, it announced on Monday (Jan 29).

JTC Corporation has granted in-principle approval for the transaction subject to compliance to stipulated conditions by the parties.

The sale price is 10.5 per cent above the latest valuation of S$15.2 million as at Jan 1 2024. The property is a 22-year-old four-storey cargo lift warehouse with an approximate net lettable area of 10,967 square metres.

The proposed divestment is in line with the strategy of rejuvenating the portfolio through selective divestments, said the manager of the trust. The capital from the divestment will provide financial flexibility to pursue opportunities in high specification, modern logistics facilities with higher potential.

The divestment is expected to be completed by FY23/24, and is not expected to have a material impact on MLT’s net asset value and net property income for FY23/24. MLT’s portfolio will consist of 182 properties following the divestment.

Units of MLT closed down 1.9 per cent or S$0.03 to S$1.53 on Monday.

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