Mapletree Logistics Trust (MLT)(SGX:M44U) has announced the intention to sell its property at 30 Woodlands Loop, Singapore. The property will be sold to local Oil & Gas engineering equipment supplier Advanced CAE Private Limited at a sale price of S$15.5 million.
|Current property of Mapletree Logistics Trust at Tai Seng|
MLT has indicated in a press statement that the property was purchased in 2007 for S$10.3 million and valued at S$11.0 million in March 2012. This results in a net disposal gain of approximately S$4.95 million which MLT has indicated will be distributed to unitholders after deducting necessary tax expenditures. Further announcement on this will be made when the final distributable amount has been determined.
MLT has said that the divestment is in line with its objective to optimise returns from the portfolio through proactive asset management efforts. The REIT has also added that capital released from the divestment will provide MLT with greater financial flexibility to pursue other attractive investment opportunities offering better yield.
MLT has assured investors that divestment is expected to have minimal impact on the REIT's net asset value and net property income for FY13/14. Units of MLT closed the day marginally higher by 1 cent at S$1.21.