Mapletree Logistics Trust property at Changi South Lane, Singapore.MLT has warned that challenges loom in the quarters ahead for its Singapore portfolio.

Logistics provider Menlo Worldwide Logistics has signed a binding commitment to lease 48,700 square metres from Singapore-listed Industrial REIT Mapletree Logistics Trust (MLT) (SGX:M44U) for a period of 10 years.

Mapletree Logictics Trust currently has 111 properties across Singapore, Hong Kong, Japan, China, Malaysia, South Korea and Vietnam with a total book value of S$4.07 billion.

Menlow is the US$1.7 billion global logistics subsidiary of US-listed logistics giant Con-way Inc. The agreement represents Menlo’s latest expansion in Singapore and elevates Menlo to MLT’s largest tenant, with leased warehouse space across four properties in Singapore and Hong Kong.

The space to be leased is at MLT's five-storey ramp-up logistics facility known as the Mapletree Benoi Logistics Hub. The property is Mapletree Logistics Trust's first redevelopment project in Singapore and scheduled for completion in the fourth quarter of 2013. This commitment by Menlo accounts for 55 percent of the property's total net lettable area. The development is now 75 percent pre-leased with the balance in advanced stages of negotiation.

Further details of this development will be covered in the upcoming issue of REITSWEEK™. Subscribe here.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.