Mapletree Logistics Trust (MLT) is acquiring a logistics property in Malaysia and two logistics assets in Vietnam from subsidiaries of the REIT’s sponsor, Mapletree Investments.

The agreed property values of the Malaysia Property and Vietnam Properties are MYR558.8 million (SGD157.9 million) and VND1,254,523 million (SGD68.4 million) respectively.

These represent discounts of between 0.2% and 3.2% to independent valuations obtained by the REIT’s trustee.

The total acquisition cost, including acquisition-related expenses, is estimated to be approximately SGD234.0 million.

“Stepping up our portfolio rejuvenation efforts, we have announced or completed over SGD200 million of divestments year-to-date, releasing capital which can be redeployed towards acquisitions”, said Ng Kiat, CEO of the REIT’s manager.

“Strategically located in logistics hubs serving the growing consumption bases in Kuala Lumpur, Ho Chi Minh City and Hanoi, these acquisitions position our portfolio to capture emerging Asia’s growth potential”, she added.

The acquisitions will increase MLT’s exposure in Malaysia and Vietnam from 24 assets to 27 assets.

Meanwhile, gross floor area in Malaysia and Vietnam will increase by 20.6% and 21.0% to 775,572 square metres and 703,941 square metres respectively.

MLT will fund the proposed acquisitions through a mix of debt and part of the sale proceeds
from divestments in recent quarters.

The REIT’s aggregate leverage is expected to increase from 38.8% as at 31 December 2023 to 39.6% on a pro forma basis after financing the acquisitions.

MLT was last done on the Singapore Exchange at SGD1.46, which presently implies a distribution yield of 6.17% 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.