SINGAPORE (Jan 28): Mapletree Logistics Trust (MLT) is acquiring an effective interest of 98.47% in Mapletree Kobe Logistics Centre in Japan for an agreed property value of 22.20 billion yen ($272.5 million), the REIT manager announced Tuesday.
Sazanka Tokutei Mokuteki Kaisha, which is indirectly wholly-owned by MLT, has entered into a conditional trust beneficial interest sale and purchase agreement with Ajisai TMK, an associate of Mapletree Investments, to acquire the trust beneficial interest of the property.
Mapletree Investments is the sponsor for MLT.
Recently completed in April 2019, the property is a freehold modern 4-storey logistics facility with a gross floor area of 102,119 sqm.
The property has the best specifications as compared to competing facilities in the same area, according to the independent market research consultant, CBRE K K.
As at Jan 21, 2020, the property is 99.7% occupied with a weighted average lease expiry by net lettable area of approximately 4.2 years.
It has a high-quality and diversified tenant mix comprising seven established and reputable tenants, most of whom are handling consumer-related goods.
The manager says the proposed acquisition will extend MLT’s footprint to Western Japan, thereby deepening its network connectivity in Japan and complementing its existing platform of 16 logistics facilities which are mostly located in the Greater Tokyo area.
It adds that the proposed acquisition is also in line with the manager’s strategy to rejuvenate MLT’s portfolio through selective divestments of older assets and re-deployment of the capital released into investments of modern facilities with higher growth potential.
The property is expected to provide a net property income (NPI) yield of 4% and be distribution per unit (DPU) accretive to unitholders.
The manager intends to fully fund the proposed acquisition through a drawdown of JPY debt facilities and an issuance of onshore JPY bonds, as well as the issuance of new units.
“This prime Grade A logistics facility with double rampways will strengthen MLT’s footprint in Japan, an attractive logistics market with a scarcity of Grade A logistics properties,” says Ng Kiat, CEO of the manager.
“The property is 99.7% leased to a high-quality tenant base and enjoys built-in rental escalations, which will provide a stable and growing income stream for MLT,” she adds.
As at 10am, units in MLT are trading 2.7% lower, or down 5 cents, at $1.78.
