The manager of Mapletree Logistics Trust (MLT) has acquired a purpose-built warehouse in Brisbane, Australia at a property purchase price of A$114 million ($109.8 million).
MLT, on Oct 21, announced the proposed acquisition of Acacia Ridge Distribution Centre located at 338 Bradman Street in Brisbane via the acquisition of all the units in the property trust holding the property from Alset Australian Mid TC.
The centre comprises two buildings with a gross floor area (GFA) of some 55,009 sqm sited on freehold land of approximately 110,000 sqm.
Following this acquisition, MLT will have three properties in Brisbane and a total of 13 properties in Australia.
According to the manager, the property is located in an established industrial and logistics precinct that is well-connected to the city centre, Acacia Ridge Rail Yard, Brisbane Airport and Port of Brisbane. The location is also “well-poised” to benefit from the government’s committed investments in major infrastructure developments in particular the high-capacity inland freight rail connecting Melbourne and Brisbane.
The property is fully leased to three established local industry players including Woolworths Group and an ASX-listed digital marketing company with a weighted average lease expiry (WALE) of 5.3 years (by net lettable area) and annual rent escalations, which will provide MLT with a stable and growing income stream.
The acquisition will be funded by debt and is expected to be accretive at the distribution level. It is expected to be completed by 4QFY2020/2021 subject to the approval of the Australian Foreign Investment Review Board.
As at 11.59am, units in MLT are trading 3 cents higher or 1.4% up at $2.14.
