Mapletree Logistics Trust acquires properties Vietnam and South Korea for S$42.2m

Mapletree Logistics Trust has announced the proposed acquisitions of a warehouse in Vietnam and another in South Korea for S$20.8m and S$21.4m respectively.

The property in Vietnam, Mapletree Logistics Park Bac Ninh Phase 1, will be acquired by way of a memorandum of understanding with MLT’s sponsor, Mapletree Investments Pte Ltd. The property in South Korea, Dakonet Logistics Centre, will be acquired through a sale and purchase agreement with Dakonet Co., Ltd.

Commenting on the Acquisitions, Ng Kiat, Chief Executive Officer of Mapletree Logistics Trust said, “The acquisition of Mapletree Logistics Park Bac Ninh Phase 1 will establish our first presence in North Vietnam, tapping into the growing distribution network serving Hanoi and its surrounding markets. Dakonet Logistics Centre will further strengthen our presence in Gyeonggi-do, a prime logistics hub near Seoul, to 11 assets with a total gross floor area of approximately 330,000 sq m. Fully leased to a tenant base of mostly international logistics players, these two acquisitions offer yields of 10% and 8% respectively and will be accretive to MLT.”

Completed in March 2012, Mapletree Logistics Park Bac Ninh Phase 1 comprises three blocks of single-storey warehouses with mezzanine offices. The property has a gross floor area of approximately 54,350 sq m and is designed with Grade-A warehouse specifications, such as floor loading capacity of 3 ton/sq m, a raised platform with dock levellers and clear height of 8 m. The facility is 100% occupied by a tenant base comprising mostly international logistics companies such as DHL, Sagawa Express, Yusen Logistics and Schenker Logistics.

Completed in November 2012, Dakonet Logistics Centre is a three-storey Grade-A dry warehouse with a gross floor area of about 16,100 sq m. It is designed with modern specifications, such as direct ramp access to all three floors, dual layer walls to prevent dew condensation, good floor-to-ceiling height of 11 m and floor loading capacity of 2.2 ton/sq m. For added efficiency, there is an indoor cargo lift to facilitate movement of goods within the warehouse. The property is fully occupied by three tenants with a weighted average lease term to expiry of 4.2 years.

The transactions will be fully funded by debt. Upon completion Mapletree Logistics Trust’s aggregate leverage ratio will be approximately 34.9%, while its total portfolio will increase to 119 properties with a book value of approximately S$4.67bn.