Mapletree Waigaoqiao Logistics Park (Photo: Mapletree Logistics Park)

Mapletree Logistics Trust is acquiring a logistics property in South Korea, from DC Deokpyung LLC for KRW35.8 billion (SGD41.4 million).

The property is located in Yongin-Icheon, a prime logistics cluster in the south-east region of the Seoul Metropolitan Area.

Comprising four blocks of dry warehouses, the property has a total gross floor area of 30,485 square metres sited on freehold land of approximately 45,935 square metres.

The property is currently leased to ATN, a domestic third-party logistics service provider and Seha Corporation, a domestic distributor and manufacturer of commercial packaging paper.

The leases have a weighted average lease expiry (WALE) of 6.22 years with built-in annual rental escalations.

The property has been valued at KRW38.7 billion by Colliers International (Hong Kong).

The initial net property income (NPI) yield is 5.5% with potential for growth when new leases are signed.

The acquisition will be funded by debt and is expected to be completed by the first calendar quarter of 2020.

Upon completion, MLT’s aggregate leverage ratio will be approximately 37.4%.

The REIT’s total portfolio will comprise 144 properties with a total value of assets under management of approximately SGD8.3 billion.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.