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Mapletree Logistics Trust sells bonded warehouse in Shanghai to GDS
MAPLETREE Logistics Trust (MLT) has agreed to divest the Mapletree Waigaoqiao Logistics Park in Shanghai to a subsidiary of Nasdaq-listed GDS Holdings for 330 million yuan (S$64 million), it said on Thursday.
GDS is an associate company of Temasek Holdings, which controls MLT, but the sale is being done after an independent and competitive bid process was conducted, MLT said.
The final sale consideration will be based on the divestment interest of 330 million yuan for the property, the adjusted net asset value of the special-purpose vehicle that holds the property, as well as related intercompany loans granted to it.
The divestment interest of 330 million yuan for the property is 108 per cent above MLT's original purchase price of 158.3 million yuan paid in 2008 and 68 per cent above the property's valuation of 196.9 million yuan as at March 31.
The 330 million yuan sum is above the valuations provided by two valuers, Jones Lang LaSalle Property Consultants and CBRE.
The Reit manager said it plans to distribute any divestment gain from the transaction to unitholders, after taking into account all relevant taxes as well as transaction-related cost expenses.
It added: "The capital released may be used to fund committed investments and/or reduce debt."
Mapletree Waigaoqiao Logistics Park is a bonded logistics facility situated within the Waigaoqiao Free Trade Zone in Pudong New District, Shanghai. Sited on a land area of approximately 19,571 sq m, the property comprises a part 3-storey and part 6-storey warehouse block served by cargo lifts with a gross floor area of 37,698 sq m.
The Reit manager said: "As the property is already developed to its maximum plot ratio, there is limited scope to increase the gross floor area of the property. After evaluating all viable options and taking into consideration the property's older warehouse specifications, as well as limited future income growth and redevelopment potential into a modern logistics facility, the manager concluded that divesting the property at the offered price is desirable in the interest of MLT's unitholders."
A divestment fee of 0.5 per cent of the sale consideration is payable to the Reit manager.
Mapletree Logistics Trust units rose two Singapore cents or 1.17 per cent to S$1.73 on Thursday.