Singapore Exchange (SGX)-listed REIT Mapletree Logistics Trust (MLT) is acquiring another asset in India.
The logistics-heavy REIT disclosed on 13 December that it is acquiring a Grade A warehouse in Farukhnagar, Delhi NCR, India for INR900 million (SGD14.5 million).
It is a single-storey asset and sits on a land area of 51,446 square metres.
The warehouse was completed in mid-2022, and is built to modern Grade A specifications, including a high floor-to-ceiling height of 12 metres.
It is fully leased to one of India’s largest third-party logistics players with a nationwide presence, said the REIT, providing no further details on this.
“With a remaining lease of 8 years as at 30 September 2023 and built-in annual rent escalations, the proposed acquisition will provide MLT with a stable and growing income stream”, MLT added.
“Along with our two existing assets in Pune, the proposed acquisition positions MLT strategically to capture opportunities in India, a fast-growing logistics market underpinned by robust domestic consumption and a rising middle class”, said Ng Kiat, CEO of the REIT’s manager.
“The proposed acquisition is in line with our continued efforts to rejuvenate our portfolio towards high- yielding, modern assets”, she added.
The purchase will be fully funded with debt and is expected to complete in 4Q FY23/24.
Upon completion, MLT’s aggregate leverage ratio is estimated to be approximately 38.9% on a pro forma basis.
MLT was last done on the SGX at SGD1.63, which presently implies a distribution yield of 5.57% according to data on the Singapore REITs table.