Mapletree Logistics Trust (MLT) has announced the proposed acquisition of two logistics properties in Pune, Maharashtra, India, making it the REIT’s first foray into the country.

The proposed acquisition was done through the acquisition of a property holding company (India SPV) for a property purchase price of 4.55 billion rupees ($84.2 million).

The properties are being acquired from a subsidiary of an affiliate of Morgan Stanley Real Estate Investing and Waterloo Motors (collectively known as the vendors).

The properties come with a total occupancy of 98.2%.

One of them comprises four blocks of single-storey ambient warehouses with a remaining land tenure of 88 years and 100% occupancy, while the other comprises two blocks of single-storey ambient warehouses with a remaining tenure of 86 years and an occupancy of 88%.

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The agreed property value stands at 4.05 billion rupees for the first, and 500 million rupees for the second, over a gross floor area of 76,134 sqm and 13,095 sqm respectively.

“This will be MLT’s first acquisition in India, a fast growing logistics market that offers attractive long term prospects,” says Ng Kiat, CEO of the manager.

“Strong demand for logistics space is underpinned by a large growing consumer market, rapidly developing e-commerce, India’s increasing importance as a major manufacturing hub in Asia Pacific as well as a severe lack of supply of Grade A warehouses.”

“The acquisition will enhance our geographical diversification and network connectivity, positioning MLT well to capture future growth opportunities in the region,” she adds.

According to the manager, India, the world’s fifth largest economy, is an attractive logistics market underpinned by favourable supply-demand dynamics.

“In addition, India which offers strong manufacturing capability at lower costs, is a beneficiary of the ‘China Plus’ supply chain diversification strategy adopted by manufacturers as they seek to enhance supply chain resilience following the Covid-19 pandemic,” it says.

Pune is also an important warehousing centre in India with demand driven largely by e-commerce, third-party logistics as well as manufacturing.

Units in MLT closed 1 cent higher or 0.5% up at $1.89 on March 17.