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Mapletree Logistics Trust to buy 4 Australia properties for A$142.2m
MAPLETREE Logistics Trust is looking to purchase four properties with a total of 103,517 square metres in gross floor area in Victoria, Australia, for A$142.2 million (S$151.9 million). The acquisition is expected to be completed over the next few days.
Should the acquisition go through, Australia will account for about 9 per cent of the trust's overall gross revenue, up from the current 6.1 per cent, it said in a filing to the Singapore Exchange on Thursday morning.
The acquisition is also expected to generate a net profit income yield of 7.6 per cent, and be accretive at the distribution level, the release added.
Three of the properties will be located in western Melbourne within 15 kilometres of the city centre, airport and port. They are leased to three tenants, namely Scott's Refrigerated Freightways, Fuji Xerox Businessforce and Bridgestone Australia. The three properties, covering a total of 46,077 sq m, are on freehold land.
The Wodonga property is located at the intersection of key highways. This enables direct access to Melbourne, Canberra, Sydney and Adelaide. It is standing on a land parcel with 290 years left to its tenure.
The acquisition will be financed by the remaining proceeds from the S$250 million of perpetual securities issued in May 2016 and borrowings.
After completion of the acquisition, the trust's aggregate leverage ratio is expected to be approximately 39.4 per cent, while its total portfolio will increase to 128 properties with a book value of about S$5.5 billion.