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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.