Analysts are overall positive on Mapletree Logistics Trust’s (MLT) proposed acquisition of a portfolio of properties from its sponsor Mapletree Investments for $1.04 billion, announced on Oct 19. MLT is proposing to acquire a 100% interest in seven properties in China, and the remaining 50% interest in 15 properties in China that it already owns. The REIT is also proposing to acquire one property in Malaysia and one in Vietnam.
The sale price represents a 1.7% discount to the agreed property value by an independent valuer appointed by the REIT’s trustees. Including expenses, the total acquisition cost is expected to be $1.09 billion. The acquisitions are expected to add 1.3% to DPU on a pro forma basis raising it to 8.25 cents, and 6.6% to NAV taking it to $1.28.
