115 Rudd Street, Mapletree Logistics Trust's second property in Brisbane. (Credit: Mapletree Logistics Trust)

Mapletree Logistics Trust (MLT) has entered into an agreement to acquire a newly built freehold warehouse in Inala, Brisbane for AUD21.25 million (USD14.5 million).

The warehouse, 115 Rudd Street in Inala, will be the REIT’s second logistics facility in Brisbane.

The acquisition will expand MLT’s footprint in Australia to a total of eleven assets with a combined gross floor area of 277,115 square metres.

The warehouse was completed in May 2020, and is now occupied by Decina Bathroomware Pty Ltd on a ten-year lease with annual rent escalations.

Brisbane is a growing logistics market supported by positive long-term economic fundamentals and resilient domestic consumption, said MLT.

Despite the short-term headwinds due to the COVID-19 situation, domestic consumption is expected to remain resilient, the REIT added, pointing to factors such as population growth.

The acquisition is expected to generate an initial net property income (NPI) yield of 5.4%.

It will be funded by debt and is expected to be completed by 3Q FY20/21.

Upon completion, MLT’s aggregate leverage ratio is estimated to be approximately 39.4%.

MLT was last done on the Singapore Exchange (SGX) at SGD1.86, with distribution yield at approximately 4.3% as compiled in the Singapore REITs table.

By Shariffa Al-Habshee

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