Singapore-listed industrial REIT Mapletree Logistics Trust has entered into a conditional share purchase agreement to acquire an 11-storey ramp-up warehouse in Tsing Yi, Hong Kong for HKD4.8 billion (SGD 834.8 million), the REIT announced late on 28 August.
The property, which is known as Mapletree Logistics Hub Tsing Yi, will be acquired from Mapletree Overseas Holdings Ltd, a wholly-owned subsidiary of the REIT’s sponsor, Mapletree Investments Pte Ltd.
“Hong Kong has consistently been one of [the REIT’s]best performing markets and continues to show great promise, due to sustained demand and limited supply”, said Ng Kiat, CEO of the REIT’s manager, in a statement on the proposed purchase.
“This acquisition will increase our net lettable area in Hong Kong by more than 70% to 3.8 million square feet, and strengthen [Mapletree Logistics Trust’s] position as a major player to meet the growing logistics demand in Hong Kong”, Ng added.
Mapletree Logistics Hub Tsing Yi is currently 100% occupied to 12 tenants, is expected to provide the REIT with a net property income (NPI) yield of 5.7%, and be DPU accretive to unitholders.