Mapletree Logistics Trust to buy Brisbane warehouse for A$105m

MAPLETREE Logistics Trust plans to buy a warehouse in southern Brisbane from a third party for A$105 million (S$102.2 million), the manager announced on Friday.

The deal - which is expected to be done by the fourth quarter - will be funded by a mix of debt and cash retained, as well as proceeds from the divestment of 531 Bukit Batok Street 23 in Singapore.

It is expected to generate an initial net property income yield of 5.7 per cent.

The freehold Coles Distribution Centre, in Heathwood, is fully leased to supermarket operator Coles Supermarkets, with 4.3 years left on the lease as at Oct 1. Weighted average lease expiry by net leasable area would remain at 3.8 years after the purchase.

The single-storey warehouse - which has a gross floor area of 55,739 square metres (599,970 square feet) and potential for an expansion of up to another 19,000 sq m - would be Mapletree Logistics Trust's first property in Brisbane and its 10th in Australia, in a portfolio of 139 properties altogether.

The manager said in presentation slides that demand for logistics properties in Brisbane is underpinned by robust domestic consumption, amid a tight supply of prime logistics properties.

The logistics market could benefit from major infrastructure projects such as a second runway at Brisbane Airport and inland rail connecting Melbourne and Brisbane, the manager added.

Mapletree Logistics Trust ended down by S$0.01 or 0.81 per cent at S$1.22 before the announcement.