Mapletree Logistics Trust to acquire Hong Kong warehouse for HK$4.8 billion

MAPLETREE Logistics Trust will acquire Mapletree Logistics Hub Tsing Yi in Hong Kong for HK$4.8 billion (S$834.8 million), the trust manager said in an announcement on Monday.

The property, owned by Mapletree Overseas Holdings, a wholly owned subsidiary of Mapletree Investments, is an 11-storey modern ramp-up warehouse, with net lettable area of 148,065 sq m. As one of 14 modern warehouses in Hong Kong, the property enjoys 100 per cent committed occupancy, said Mapletree Logistics Trust Management.

The space is currently leased to 12 tenants including Ever Gain, Adidas, HKTV and DKSH.

The trust manager's CEO Ng Kiat said that Hong Kong has consistently been one of MLT's best performing markets, and continues to show great promise due to sustained demand and limited supply.

"With its prime logistics location, modern specifications and 100 per cent committed occupancy with quality tenants, this acquisition will enhance MLT's income and tenant diversification," she said. "It is also expected to provide a NPI (net property income) yield of 5.7 per cent and be DPU (distribution per unit) accretive to our unitholders."

The acquisition will be funded with a combination of equity and debt. It is also subject to approval by unit holders at an extraordinary general meeting on Sept 13.