Dakonet Logistics Centre in Gyeonggi-do, a prime logistics hub near Seoul.

Singapore-listed industrial REIT, Mapletree Logistics Trust (SGX:M44U), announced on 22 May that it will be acquiring two warehouses in Vietnam and South Korea respectively for SGD42.2 million.

The properties are namely the Mapletree Logistics Park Bac Ninh Phase 1, to be acquired from sponsor Mapletree Investments Pte Ltd for VND339.4 billion (SGD20.8 million) and Dakonet Logistics Centre from Dakonet Co Ltd for KRW17.5 billion (S$21.4 million).

The REIT has described the acquisitions as an establishment of a new presence in North Vietnam and strengthening of our presence in Gyeonggi-do, a prime logistics hub near Seoul.

“Fully leased to a tenant base of mostly international logistics players, these two acquisitions offer net property income yields of 10% and 8% respectively and will be accretive to Mapletree Logistics Trust”, said Ng Kiat, CEO of the REIT’s manager.

Mapletree Logistics Park comprises of three blocks of single-storey warehouses with mezzanine offices. The property has a gross floor area of approximately 54,350 sqm and is designed with Grade-A warehouse specifications, such as floor loading capacity of 3 ton/sqm, raised platform with dock levellers and clear height of 8 metres.

The property is 100% occupied by tenants such as DHL, Sagawa Express, Yusen Logistics and Schenker Logistics. As at 30 April 2015, the leases have a weighted average lease term to expiry of 2.1 years.

Meanwhile Dakonet Logistics Centre is a three-storey Grade-A dry warehouse with a gross floor area of about 16,100 sqm. It is designed with modern specifications, such as direct ramp access to all three floors.

The property is fully occupied by three tenants – Toll Global Logistics Korea Co. Ltd Dada&Kolonet Co. Ltd and Dakonet.

The acquisitions will be fully funded by debt. Upon completion, the REIT’s aggregate leverage ratio will be approximately 34.9% while total portfolio will increase to 119 properties with a book value of approximately SGD4.67 billion.

Dakonet Logistics Centre in Gyeonggi-do, a prime logistics hub near Seoul.
Dakonet Logistics Centre in Gyeonggi-do, a prime logistics hub near Seoul.

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.