Mapletree Logistics Trust announced on Oct 19 it planned to acquire a portfolio of properties from its sponsor Mapletree Investments for $1,040 million, 1.7% below the agreed property value by an independent valuer appointed by the REIT’s trustees. Including expenses, the total acquisition cost is expected to be $1,090.2 million. The acquisitions are expected to add 1.3% to DPU on a pro forma basis raising it to 8.25 cents, and 6.6% to NAV taking it to $1.28. Gearing is likely to fall from 39.5% as at Sept 30, 2020, to 37.1% on a pro forma basis.

The acquisitions are likely to be funded by a combination of debt and equity fund raising (EFR) comprising of a private placement and preferential EFR. Units amounting to $300 million will be issued to Mapletree Investments. “The consideration in units is to show the sponsor’s alignment with us,” says Ng Kiat, CEO of MLT’s manager during an analysts’ briefing on Oct 19.

MLT is proposing to buy a 100% interest in seven properties in China, and the remaining 50% interest in 15 properties in China that it already owns. The REIT is also proposing to acquire one property in Malaysia and one in Vietnam.

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