Singapore-listed industrial REIT Mapletree Logistics Trust has entered into agreements to dispose two Japanese properties for JPY13,500 million (USD120.5 million or SGD165.4 million).
The properties, Zama Centre and Shiroishi Centre, are both four-storey warehouses with gross floor areas of 41,170 square metres and 11,181 square metres respectively.
Zama Centre is a ten-year-old warehouse located in Kanagawa prefecture, while Shiroishi Centre is a 43-year-old warehouse located in Hokkaido prefecture.
The two assets were originally purchased for JPY12,309 million in 2007, and valued at JPY10,225 million as at 31 March 2017.
As such, the proposed divestment consideration represents a gain of 10% above the original purchase price, and 32% premium above the latest valuation.
“We have considered all viable options for Zama Centre and Shiroishi Centre”, said Ng Kiat, CEO of the REIT’s manager, in a statement on the planned divestment.
“In view of their older warehouse specifications, limited future income growth and lack of redevelopment potential, and considering the offer on hand, we concluded that divesting the properties is desirable in the interest of [the REIT’s]unitholders”, she added.
After providing for taxes and transaction related expenses, the REIT is expected to recognise an estimated divestment gain of approximately JPY234 million (SGD2.9 million) and this will be distributed to unitholders.
Units of Mapletree Logistics Trust are currently listed on the Singapore Exchange at SGD1.20.