The manager of Maple Logistics Trust (MLT) has announced the proposed acquisition of 13 logistics properties located in China for RMB4,111.7 million ($870 million) and 3 logistic properties in Vietnam for US$95.9 million ($129.9 million).

Separately, the manager also announced the proposed acquisition of an effective 97% interest in the trust beneficial interest in a logistics facility in Japan for an agreed property value of JPY35,000 million ($416.3 million).

The total acquisition for all the properties, including acquisition-related expenses, is estimated to be approximately $1,467.5 million. 

The China properties are being acquired through purchases from subsidiaries of Mapletree Investments, MLT’s sponsor, and a subsidiary of Itochu Corporation. The Vietnam properties are being acquired from Mapletree Investments, while the Japan property is being acquired from an unrelated third party. 

See: 1008 Brokers Digest

The assets have an average age of 1.6 years.

“The acquisitions in China and Vietnam will expand MLT’s network connectivity in these large growing consumption markets while the acquisition in Japan will scale up our presence in Greater Nagoya, an attractive logistics market strategically located between Greater Tokyo and Greater Osaka. Spanning over 1.7 million square feet of gross floor area, this freehold modern ramp-up facility will be our largest asset in Japan,” says Ng Kiat, CEO of MLT's manager.

The agreed property value of the China and Vietnam properties represents a discount of approximately 1.2% and 0.5% to the aggregate valuations by independent property valuers appointed by the trustee of MLT and the manager of MLT respectively. 

The agreed property value of the Japan property represents a discount of approximately 1.7% to its independent valuation. 

According to the manager, the acquisitions are expected to be distribution per unit and net asset value per unit accretive on a historical pro forma basis.

The manager intends to finance the proposed acquisitions via a combination of equity and debt. Mapletree Investments has agreed to receive consideration units in satisfaction of part of the acquisition price for the China properties.

Units in MLT closed 1 cent or 0.51% lower at $1.95 on Nov 22.