Mapletree Logistics Trust (MLT) is making its first foray into India by acquiring two logistics properties in Pune, Maharashtra.
The properties are being acquired from a subsidiary of an affiliate of Morgan Stanley Real Estate Investing and Waterloo Motors Private Limited for SGD84.2 million.
“This will be MLT’s first acquisition in India, a fast growing logistics market that offers attractive long term prospects”, said Ng Kiat, CEO of the REIT’s manager.
“Strong demand for logistics space is underpinned by a large growing consumer market, rapidly developing e-commerce, India’s increasing importance as a major manufacturing hub in Asia Pacific as well as a severe lack of supply of Grade A warehouses”.
“The acquisition will enhance our geographical diversification and network connectivity, positioning MLT well to capture future growth opportunities in the region”, she added.
The acquisition is expected to generate a net property income yield of 7.4% and it is also expected to be accretive at the distribution level.
It will be funded by debt and is expected to be completed by the second calendar quarter of 2021.
Upon completion, the REIT’s aggregate leverage ratio will be approximately 40.1%, with a portfolio that will comprise 164 properties valued at approximately SGD10.7 billion.
Further details of the acquisition can be viewed here.
MLT was last done on the SGX at SGD1.89, which implies a distribution yield of 4.3% according to data compiled on the Singapore REITs table.