No plans to merge MLT and MIT: MLT manager

Tay Peck Gek

Published Wed, Jan 12, 2022 · 11:37 PM

THERE are no plans by the manager of Mapletree Logistics Trust M44U (MLT) to merge the logistics real estate investment trust (Reit) with Mapletree Industrial Trust ME8U : ME8U 0% (MIT), even as two other Reits from their sponsor have proposed a merger.

Mapletree Logistics Trust Management stated in its responses dated Jan 10 to unitholders' questions for an extraordinary general meeting (EGM) that it has no plans to merge Mapletree Logistics Trust and Mapletree Industrial Trust.

"We believe that there is sufficient differentiation between MLT and MIT in terms of asset type, geography and tenant profile, and they are both operating at a meaningful scale individually with promising growth prospects in their respective sectors. Hence, there is no compelling reason to merge," Mapletree Logistics Trust Management said.

As at end-September last year, Mapletree Logistics Trust had a portfolio of 163 logistics assets in Singapore, Hong Kong, Japan, mainland China, South Korea, Australia, Malaysia and Vietnam, with assets under management of S$10.8 billion.

Mapletree Industrial Trust, in contrast, managed S$8.5 billion worth of assets, with its portfolio of 143 assets being made up primarily of data centres, flatted factories and high-technology buildings in Singapore and North America as at end-September last year.

Mapletree Logistics Trust wants unitholders to approve at the EGM on Thursday (Jan 13) resolutions including the proposed acquisitions of 13 properties in China and 3 in Vietnam as interested-person transactions and the proposed issuance of new units as partial payment for the acquisitions.