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Mapletree Logistics Trust acquires remaining stake in HK property for HK$610m
MAPLETREE Logistics Trust (MLT) is acquiring the remaining 38 per cent of Shatin No 3 in Hong Kong for HK$610 million and will now fully-own the strata-titled logistics property.
The building comprises an 18-storey warehouse with cargo lift access. It has a total net lettable area of approximately 39,125 sq m on a site area of 3,400 sq m.
The property has been in MLT's portfolio since 2006 with a consistent track record of strong operating performance, said Ng Kiat, chief executive officer of Mapletree Logistics Trust Management.
"We believe that there is potential for the whole building to be repositioned through asset enhancements to attract higher value tenants," she added.
The manager of MLT said it intends to reposition the building "with the objective of generating a higher yield and improved capital value".
The acquisition follows MLT's recent purchase of Mapletree Logistics Hub Tsing Yi with the aim of expanding its presence in Hong Kong, "an attractive market that enjoys healthy organic growth due to supply constraints", said Ms Ng.
The purchase will be financed through bank borrowings and internal funds.