Mapletree Logistics Trust granted option to buy a warehouse building in Changi

Tay Peck Gek

Published Fri, Jul 9, 2021 · 11:18 PM

MAPLETREE Logistics Trust M44U : M44U 0% (MLT) has been granted an option to buy a property in Changi for S$24.5 million from RSH Holdings, with the purchase expected to be accretive to its distribution, said MLT's manager.

In regulatory statement to the Singapore Exchange, Mapletree Logistics Trust Management announced that the property is made up of a low-rise temperature controlled warehouse building with ancillary offices which will be sold with vacant possession.

The MLT manager stated that it is in talks with an international third-party logistics player to lease as the anchor tenant of the property, which has a gross floor area of about 11,500 square metres and is sited on leasehold land with a balance tenure of about 33.3 years.

The acquisition, if it materialises, will be funded by debt and will put MLT's aggregate leverage ratio at 38.5 per cent.

The MLT manager stated that it is expected to generate a stabilised property income yield of about 6.2 per cent based on the purchase price and initial land premium.

The counter ended 2.44 per cent higher at S$2.10 on Friday, before this announcement was made.