You are here
Mapletree Logistics Trust to buy Brisbane warehouse for A$21.25 million
MAPLETREE Logistics Trust has inked a conditional agreement for a newly-built freehold warehouse in Brisbane for A$21.25 million (S$20.17 million), the manager announced on Monday.
With the acquisition to be funded by debt, Mapletree Logistics Trust’s aggregate leverage ratio will stand at about 39.4 per cent when the deal is completed - up from 39.3 per cent as at March 31, 2020, according to the trust’s most recent financial results.
The manager added that the purchase of the industrial building at 115, Rudd Street, in the Brisbane suburb of Inala, is expected to go through by the third quarter of its financial year to end-March.
The property, which has a gross floor area of 9,050 square metres and was completed in May, is fully leased for 10 years to Australian bath manufacturer Decina, with annual rent escalations. The overall portfolio weighted average lease expiry by net lettable area is stable at 4.3 years.
The lease to “strong quality tenant” Decina will offer a “stable and growing income stream”, said the manager, adding that the purchase should be accretive with an initial yield of 5.4 per cent.
The manager also said in its announcement that the logistics market in Brisbane is expected to grow, with the support of “positive long-term economic fundamentals and resilient domestic consumption”, despite short-term challenges from the deadly coronavirus pandemic.
Units closed at S$1.86 on Monday, lower by S$0.03 or 1.59 per cent, before the news.