Mapletree Logistics Trust (MLT) M44U has proposed the divestment of its property at 72 Tuas South Avenue 1 for a sale price of $16.8 million.
On Jan 29, the manager of MLT announced that HSBC Institutional Trust Services (Singapore), in its capacity as trustee of MLT, had entered into a purchase agreement with an unrelated third party.
The property is a 22-year-old four-storey cargo lift warehouse with a net lettable area of approximately 10,967 sqm. The sale price of $16.8 million is 10.5% above the latest valuation of $15.2 million as at Jan 1.
The manager says the proposed divestment is in line with its strategy to rejuvenate MLT’s portfolio through selective divestments.
Capital released from the divestment will provide MLT with greater financial flexibility to pursue investment opportunities in high specification, modern logistics facilities with higher growth potential, the manager reasons.
JTC Corporation has granted in-principle approval for the transaction subject to compliance with stipulated conditions.
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The proposed divestment is expected to be completed by the end of MLT’s FY2024 ending March 31. It is not expected to have a material impact on MLT’s net asset value and net property income for the current financial year.
Following the divestment, MLT’s portfolio will consist of 185 properties.
Units in MLT closed unchanged at $1.56 on Jan 29.
