Singapore-listed Mapletree Logistics Trust announced on 23 September that it has acquired a logistics park property in Vietnam for VND339.2 billion (USD15.2 million).

The property, Mapletree Logistics Park Phase 2, and located within the Vietnam-Singapore Industrial Park II in Binh Duong Province, is being acquired from the industrial REIT’s sponsor, Mapletree Investments Private Limited.

The purchase consideration is lower than two independent assessments received from Jones Lang Lasalle Vietnam, and CBRE (Vietnam), who have valued the property at VND346 billion and VND355 billion respectively.

Mapletree Logistics Park Phase 2 comprises four blocks of single-storey, multi-tenanted warehouses with mezzanine offices, features a gross floor area of about 66,300 square metres, and land area of 106,200 square metres.

The property is 100% occupied, carries a weighted average lease expiry (WALE) of 1.8 years, and is expected to generate an initial net property income yield of 9.9%.

The acquisition is also expected to be accretive at the distribution level, said Mapletree Logistics Trust, in its statement on the acquisition.

“With this third property in Vietnam, we will increase our ability to tap the rising demand for good quality logistics facilities in a fast growing market with strong domestic consumption”, said Ng Kiat, CEO of the REIT’s manager.

The acquisition will be funded by proceeds raised from the SGD250 million perpetual securities issued by Mapletree Logistics Trust in May 2016.

The REIT’s aggregate leverage ratio will remain at approximately 37.4% post-acquisition.

The logistics park was inducted on 23 September, and brings Mapletree Logistics Trust’s portfolio of properties to 124, with a book value of approximately SGD5.3 billion (USD3.9 billion).

Units of Mapletree Logistics Trust finished the trading day about 0.5% higher from its previous close on the Singapore Exchange to end at SGD1.08.