Mapletree Logistics Trust (MLT) is acquiring five freehold logistics properties in Yongin-Icheon, South Korea for KRW 280.0 billion (SGD335 million).
The properties are modern warehouses that are fully leased, and tenants include third-party logistics firms and e-commerce operators such as Dongsan Logistics and TE Logis which are supporting Coupang and e-Bay respectively.
The properties feature weighted average lease expiry (WALE) of approximately 1.7 years.
The acquisitions will increase MLT’s gross floor area in South Korea by 40%, said the REIT.
The acquisitions will raise MLT’s e-commerce revenue exposure in South Korea from 15% to 25%, and are expected to generate an initial net property income yield of approximately 4.5%.
The manager expects the acquisitions to be accretive to MLT’s distribution per unit.
The acquisitions will be funded by debt, and MLT’s aggregate leverage ratio is estimated to be 38.9% once the transaction completes.
Once inducted, the REIT’s total portfolio will increase to 161 properties with assets under management at SGD10.5 billion.
The REIT’s full presentation on the acquisition can be accessed here.
MLT was last done on the SGX at SGD1.95, which implies a distribution yield of 4.2% according to data compiled on the Singapore REITs table.