SINGAPORE (Sept 17): The manager of Mapletree Logistics Trust (MLT) announced Tuesday it has entered into a conditional forward purchase agreement for the acquisition of a warehouse in Melbourne, Australia at a property purchase price of A$18.4 million ($17.4 million).

The property is a one-storey modern logistics facility to be constructed at 15 Boterro Place in Truganina, Melbourne – one of the fastest growing industrial precincts in Australia.

It sits on a freehold land spanning some 25,650 sqm, and will have a net lettable area of approximately 15,100 sqm when completed.

Designed with Grade A specifications, it will include features to cater to the requirements of major logistics tenants in Australia, such as minimum clearance height of 10 metres and floor loading capacity of 30kN/sqm.

The property will be acquired with vacant possession, and MLT will be responsible for leasing the warehouse.

The property purchase price is just a whisker below the valuation of the property at A$18.5 million by CBRE Valuations as at July 18, 2019.

Settlement is expected to take place by 3Q20, subject to the fulfilment of certain relevant conditions.

The manager says the acquisition will be funded by debt. Upon settlement, MLT’s aggregate leverage ratio is projected to increase by 0.1% to approximately 36.9%.

Based on the property purchase price, the stabilised NPI yield is estimated to be 6.3%.

The proposed acquisition will bring MLT’s portfolio to 138 properties, with a total value of assets under management of $7.9 billion.

Units in MLT closed flat at $1.58 on Tuesday before the announcement.