Mapletree Logistics Trust is divesting Subang 1 and Chee Wah in Malaysia for a total sale price of MYR50.2 million.

Subang 1 is a 16-year old warehouse located in Subang while Chee Wah is a 18-year old warehouse located in Puchong.

The assets feature gross floor area of 12,873 square metres and 7,705 square metres respectively.

Both properties are single-storey warehouses with limited redevelopment potential, said the REIT.

The proposed divestments of these two properties are in line with the manager’s proactive asset management strategy to rejuvenate the portfolio, it noted.

“Capital released from the divestments will provide MLT with greater financial flexibility to pursue investment opportunities of modern assets that cater to the requirements of today’s logistics users”, the REIT added.

The total sale price of MYR50.2 million is 6.1% above the latest aggregate valuation of MYR47.3 million for both properties as at 1 October 2022.

MLT’s manager has elected to waive the 0.5% divestment fee for this transaction.

It is expected to be completed by the first half of FY23/24.

Following this, MLT’s portfolio will consist of 183 properties, including 15 in Malaysia.

The REIT was last done on the Singapore Exchange at SGD1.60, which presently implies a distribution yield of 5.62% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

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