Singapore-listed industrial REIT Mapletree Logistics Trust (MLT) (SGX:M44U) announced on 7 November that it has entered into a SGD34 million sale and purchase agreement with Havi Logistics Singapore for the acquisition of 190A Pandan Loop.

The property is a four-storey purpose built food distribution centre with chiller and freezer facilities. It a gross floor area of approximately 10,400 sqm and sits on a land site of approximately 8,500 sqm with remaining land lease tenure of 40 years.

190A Pandan Loop is currently 79% leased to two tenants, food and cold chain logistics provider Havi Logistics and baked goods supplier Aryzta Singapore. The leases have a weighted average lease term to expiry of 7.1 years.

MLT has said that it expects the acquisition to provide a stabilised net property income (NPI) yield of 6.5% and is also expected to be DPU-accretive upon completion. The acquisition will be completed by the end of November 2014.

Additionally MLT announced that it will be divesting a four-storey light industrial building, 134 Joo Seng Road, for SGD13.5 million to construction and maintenance company Nat Aire Builder & Distribution. The REIT has described the property as “designed with building specifications that are no longer able to accommodate today’s modern warehousing requirements”.

“With a gross floor area of approximately 7,100 sqm, there is limited potential for enhancement or redevelopment as the property has reached its maximum allowable plot ratio of 2.5”, said MLT, adding that the divestment is pending approval from the relevant authorities and is expected to be completed by the first quarter of 2015.

Upon completion of both transactions, MLT's aggregate leverage ratio will be approximately 34.9% while its total portfolio will remain at 115 properties with a book value of approximately SGD4.39 billion. Units of MLT are currently listed on the Singapore Exchange at SGD1.16.