MAPLETREE Logistics Trust Management Ltd, manager of Mapletree Logistics Trust (MLT), on Tuesday night said that MLT will acquire its fifth property in Shah Alam, Malaysia for RM160 million (S$53.2 million).
The proposed acquisition of the warehouse facility - Mapletree Shah Alam Logistics Park - will be from MLT's sponsor, Mapletree Investments Pte Ltd.
The proposed acquisition will be funded by proceeds raised from the recent issuance of S$250 million of perpetual securities and is expected to complete by November 2016, subject to approval from the state authority.
After completion of the acquisition, MLT's aggregate leverage ratio will be about 36.6 per cent, while its total portfolio will comprise 123 properties with a book value of S$5.2 billion.
Ng Kiat, CEO of the manager, said that the proposed acquisition will be its 15th logistics facility in Malaysia.
"Demand for modern logistics facilities in this area remains healthy, especially from third party logistics players, while supply of quality facilities is limited. With its good specifications, strong tenancy profile and projected net property income yield of 7.5 per cent, the acquisition will strengthen MLT's portfolio."
The property is located within the popular Shah Alam Industrial Park, home to many multinationals and established logistics players. It is well connected to Kuala Lumpur City Centre, Kuala Lumpur International Airport and Port Klang via the major highways.
Comprising three blocks of single storey multi-tenanted warehouses with mezzanine offices, the property has a total gross floor area of about 60,905 sq m and is designed with modern building specifications.
The property is 100 per cent leased to a tenant base of mainly international third party logistics service providers, including XPO Worldwide, Pantos Logistics, Logwin Air & Ocean and YCH DistriPark.