Singapore-listed industrial REIT Mapletree Logistics Trust (MLT) (SGX:M44U) announced on 10 December that it has formally completed the acquisition of South Korean property Smart Logistics Centre.
MLT first announced in November 2014 that it has entered into a sale and purchase agreement to acquire the three-storey dry warehouse for KRW21.4 billion (SGD25.5 million). The REIT expects the acquisition to generate an initial net property income yield of approximately 7.8% and be DPU-accretive overall.
As the acquisition is fully funded by debt, MLT’s gearing has now increased and stands at approximately 35.5%.
With the acquisition now complete, MLT’s portfolio has increased to 117 properties. The portfolio now comprises of 53 industrial properties in Singapore, 22 in Japan, eight in Hong Kong, 10 in South Korea, 14 in Malaysia, nine in China, and one in Vietnam. The total book value of these properties is approximately SGD4.4 billion.
Units of MLT closed the trading day on the Singapore Exchange at SGD1.17.