Mapletree Logistics Trust to acquire Hong Kong warehouse for $834.8 mil

Mapletree Logistics Trust to acquire Hong Kong warehouse for $834.8 mil

By: 
PC Lee
28/08/17, 10:13 pm

SINGAPORE (Aug 28): Mapletree Logistics Trust is acquiring Mapletree Logistics Hub Tsing Yi in Hong Kong for HK$4.8 billion ($834.8 million), the trust manager said in a Monday announcement.

The seller is Mapletree Overseas Holdings, a wholly owned subsidiary of Mapletree Investments.

Mapletree Logistics Hub Tsing Yi is an 11-storey modern ramp-up warehouse with a net lettable area of 148,065 sqm. Located at Tsing Yi, the property is in close proximity to the Kwai Chung-Tsing Yi container terminals, and is also well connected by highways to the city centre, the Hong Kong International Airport and Mainland China.

As one of only 14 modern warehouses in Hong Kong, the property enjoys 100% committed occupancy. It is leased to 12 high quality and reputable tenants, including Ever Gain, adidas, HKTV and DKSH.

Ng Kiat, CEO of the manager, says, “This acquisition will increase our net lettable area in Hong Kong by more than 70% to 3.8 million square feet, and strengthen MLT’s position as a major player to meet the growing logistics demand in Hong Kong.”

“With its prime logistics location, modern specifications and 100% committed occupancy with quality tenants, this acquisition will enhance MLT’s income and tenant diversification. It is also expected to provide a NPI yield of 5.7% and be DPU accretive to our unitholders,” adds Ng.

Following the acquisition, Hong Kong will become the second largest income contributor to MLT accounting for 27% of its NPI, up from 17% previously.

The manager intends to fund the acquisition with a combination of equity and debt.

The acquisition is subject to approval by unitholders at an extraordinary general meeting to be held on Sept 13.

Units of MLT closed 0.5 cent higher at $1.195 on Monday.

Tabung Haji fails to recognise $180 mil in impairment: PwC

KUALA LUMPUR (Dec 11): Lembaga Tabung Haji failed to recognise a total of RM549 million ($180.4 million) in impairment losses of investments in several associate companies and subsidiaries as well as fair value losses in investment properties and impairment of investment in available-for-sale (AFS) debt security, according to a report by PricewaterhouseCoopers (PwC) made available yesterday. This comes days after the 2017 Auditor-General's Report revealed that the pilgrims fund board had failed to report an asset impairment totalling RM227.81 million from its investment in th....
Read More >>

Eindec increases market reach for its dampers by collaborating with Aire-Max

SINGAPORE (Dec 11): Catalist-listed Eindec Corporation, an air environmental solutions and equipment manufacturer, together with air diffusion equipment distributor Aire-Max Asia, jointly announced that they will be collaborating to increase the market reach for Eindec’s proprietary brands of damper products in Singapore, Indonesia and Vietnam. In this collaboration, Aire-Max is appointed as the group’s distributor and it will be promoting the group’s proprietary “Eindec” and “Kyodo” brands of dampers. The range of dampers, also known as air handlers, include the fire and s....
Read More >>

Singapore indicates region's weakest hiring intentions for 1Q19: ManpowerGroup

SINGAPORE (Dec 11): Singapore’s hiring place is expected to moderate in 1Q19 after three consecutive quarters of strengthening labour market activity, according to the latest ManpowerGroup Employment Outlook Survey. After accounting for seasonal variations, ManpowerGroup notes that the net employment outlook was +10%, unchanged y-o-y but down from 11%-13% over 2Q-4Q18. This means hiring intentions declined by 3 percentage points when compared to the previous quarter, but unchanged in comparison to a year ago.   ManpowerGroup’s net employment outlook indicator is derived fro....
Read More >>
Active management can deliver attractive returns amid tightening liquidity, says Charles Schwab

SINGAPORE (Dec 10): In the last few years, passive fund management has become increasingly popular a