MIT divests 19 Changi South Street 1 for $13 mil

Samantha Chiew
Samantha Chiew12/23/2021 07:02 PM GMT+08  • 2 min read
MIT divests 19 Changi South Street 1 for $13 mil
Mapletree Industrial Trust divests light industrial building in Changi for $13 mil.
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The manager of Mapletree Industrial Trust (MIT) is divesting its 19 Changi South Street 1 property to Esco Micro for $13.0 million.

The property was valued at $11.9 million as at Nov 5 and contributed about 0.2% to MIT’s portfolio gross revenue in the financial year ended Mar 31. It was acquired by MIT on Oct 21, 2021 as part of its initial public offering portfolio for $12.4 million. The net proceeds from this divestment will be deployed to fund committed investments and working capital requirements and/or reduce existing debt.

With a gross floor area of about 82,737 sq ft, the property is a two-storey Light Industrial Building with a four-storey extension block located within the Changi South Industrial Estate. It is sited on a land area of about 67,513 sq ft with a 30-year land lease commencing from Nov 16, 1996 and an option to extend for another 30 years

The property has been vacant since September 2021 following the lease expirations of its anchor tenants. The manager has assessed that it would be difficult to secure a suitable mix of anchor tenants in the near term. Given its relatively small land area, the manager has also assessed that it would not be economically viable to redevelop the site. This divestment is hence in line with the manager's proactive asset management strategy to improve portfolio quality and optimise returns to unitholders.

The manager will receive a divestment fee of 0.5% of the sale price. The proposed divestment is subject to approval by JTC Corporation and is expected to complete by the first half of 2022.

Units in MIT closed at $2.65 on Dec 23.

See also: Saudi Aramco takes $4.7 bil stake in China oil refinery

Photo: Mapletree Industrial Trust

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