Singapore-listed warehouses-heavy REIT Mapletree Logistics Trust (MLT) is divesting its asset at 30 Tuas South Avenue 8 for SGD10.5 million.

The asset is being divested to an unrelated third party and the transaction has received in-principle approval from industrial regulator JTC Corporation.

30 Tuas South Avenue 8 is a part single-storey, part two-storey warehouse with a building age of over 25 years.

It has a net lettable area of approximately 5,233 square metres.

The sale price of SGD10.5 million is 10.5% above the latest valuation of SGD9.5 million as at 31 March 2024, said the REIT.

“The proposed divestment is in line with the Manager’s continued efforts to rejuvenate its portfolio through selective divestments”, said MLT in a 10 May statement.

“Capital released from the divestment will provide MLT with greater financial flexibility to pursue investment opportunities in high specification, modern logistics facilities with higher growth potential”, the REIT added.

The proposed divestment is expected to be completed by 1Q FY24/25.

It is not expected to have a material impact on MLT’s net asset value and net property income for FY24/25, said the REIT.

MLT was last done on the Singapore Exchange at SGD1.37, which presently implies a distribution yield of 6.57% 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.