Mapletree Logistics Trust property in Japan, Moriya Centre.

Singapore-listed industrial REIT, Malpetree Logistics Trust (SGX:M44U), has announced its intention to acquire a cold store warehouse located in Sydney, Australia, for a purchase consideration of AUD253.0 million (SGD261.5 million).

The warehouse, Coles Chilled Distribution Centre, is being acquired from BGAI Pty Ltd, a 50-50 joint venture between Brickworks Limited and Goodman Australia Industrial Fund.

The property comprises of two blocks of single-storey cold store warehousing facilities with a total gross floor area (GFA) of 55,395 square metres.

It is sited on 165,200 square metres of freehold land, of which 15,000 square metres of reserve land can potentially yield an additional GFA of 7,000 sqm for future expansion.

The facility offers frozen and chilled warehousing with temperature control of 2°C to -23°C.

Coles Chilled Distribution Centre is 100% leased to Coles Group Limited with a remaining lease tenure of 19 years and annual rent increments. Coles is Australia’s second largest supermarket chain.

The acquisition will extend the REIT’s portfolio weighted average lease expiry (WALE) from 4.2 years to 4.5 years. The acquisition is expected to complete by 30 August 2015 and increase the REIT’s aggregate leverage ratio from 34.9% to 38.5%.

The acquisition, with first year net property income (NPI) yield of 5.6%, will be fully debt funded and is expected to be yield accretive to unitholders. Once complete, the REIT’s portfolio will increase to 120 properties with a book value of approximately SGD4.95 billion.

Units of Mapletree Logistics Trust are currently listed on the Singapore Exchange at SGD1.13.

Mapletree Logistics Trust property in Japan, Moriya Centre.
Mapletree Logistics Trust property in Japan, Moriya Centre. (Photo: Mapletree Logistics Trust)

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.