SINGAPORE (Dec 6): The manager of Mapletree Logistics Trust (MLT), via a special purpose entity, has agreed to sell Senai-UPS in Malaysia to V.S Industry for MYR28 million ($9.2 million).

Located within the Senai Industrial Estate in Johor, the property is an air-conditioned single-storey warehouse with an annexed two-storey office building.

It has a gross floor area of 11,494 sqm on a land site of 18,165 sqm.

The property has been 51% occupied since early 2015 when the existing tenant reduced its leased space.

Acquired in 2007 for MYR25.5 million, the property was valued at MYR20.5 million as at end Oct.

The sale price of MYR28.0 million represents a premium of 37% over the latest valuation.

In a filing last night, manager Mapletree Logistics Trust Management says the divestment of the property is in line with the manager’s proactive asset management efforts to continually improve the quality of MLT’s portfolio.

Given the property’s low yield and limited future income growth, and after evaluating various asset options including redevelopment, the manager has concluded that divesting the property at the offered price is in the interest of MLT’s unitholders.

“Capital released from the divestment will provide MLT with greater financial flexibility to pursue other investments of modern and higher yielding assets. In the interim, it will be used for MLT’s working capital,” says Mapletree Logistics Trust Management.

In accordance with MLT’s trust deed, the manager will receive a divestment fee of 0.5% of the sale price of the property.

Units in MLT closed 2 cents higher at $1.28.