SINGAPORE (Dec 26): Mapletree Logistics Trust (MLT) is selling Mapletree Waigaoqiao Logistics Park to a subsidiary of Temasek Holdings associate GDS Holdings for RMB 330.0 million ($64.0 million), the manager announced Thursday.
Temasek is a controlling unitholder of MLT, while its indirect wholly-owned subsidiary STT GDC owns a 36.1% stake in GDS Holdings. As such, the proposed divestment is considered an interested person transaction.
A wholly-owned subsidiary of MLT has entered into a sale and purchase agreement to divest its 100% equity interest in MapletreeLog Integrated (Shanghai) (HKSAR) and its wholly-owned subsidiary MapletreeLog Integrated (Shanghai) Co, which owns the property.
The attributable value of the divestment interest is more than double the purchase price of RMB 158.3 million for the property in 2008.
The logistics facility sits on a land area of approximately 19,571 sqm, located within the Waigaoqiao Free Trade Zone in Pudong New District, in Shanghai, China.
The property comprises a part 3-storey and part 6-storey warehouse block, with a gross floor area (GFA) of 37,698 sqm.
The manager of MLT says divesting the property at the offered price is “desirable” as the property is already developed to its maximum plot ratio, and there is limited scope to increase its GFA.
“After evaluating all viable options and taking into consideration the property’s older warehouse specifications, as well as limited future income growth and redevelopment potential into a modern logistics facility, the manager concluded that divesting the property at the offered price is desirable in the interest of MLT’s unitholders,” it said in a press release.
It adds that capital released from the divestment will improve MLT’s financial flexibility to pursue investments of higher-quality assets.
The manager plans to distribute any divestment gain from the transaction to unitholders, while the capital released may be used to fund committed investments and/or reduce debt.
The manager of MLT says the transaction is carried out on an arm’s length basis, and points out that the attributable value of the divestment is higher than the valuations provided by two independent valuers.
Jones Lang LaSalle Property Consultants values the divestment interest at RMB193.0 million, while CBRE has a valuation of RMB 208.0 million.
Units in Mapletree Logistics Trust closed 2 cents higher, or up 1.2%, at $1.73 on Thursday before the announcement.
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