Mapletree Logistics Trust announces proposed divestments amounting to $54.9 mil

Bryan Wu
2-min read

The proposed divestments include a Tuas warehouse in Singapore and two industrial buildings in Johor, Malaysia.

The manager of Mapletree Logistics Trust M44U (MLT)  M44U has announced the proposed divestments of 10 Tuas Avenue 13 in Singapore, at a sale price of $11.1 million, and Flexhub and Padi in Malaysia, at a total sale price of RM151.2 million ($43.8 million).

HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of MLT, has entered into a purchase agreement with an unrelated third party for the proposed divestment in Singapore, which has been granted in principle approval by JTC Corporation.

Completed in 2008, 10 Tuas Avenue 13 is a six-storey cargo lift warehouse with a gross floor area of 13,471 sqm on a land site of 12,082 sqm. The sale price of $11.11 million is 15.7% above the latest valuation of $9.6 million as at Oct 1.

The proposed divestment in Singapore is expected to be completed by 3QFY2024, and is not expected to have a material impact on MLT’s net asset value and net property income for FY2024.

Similarly, HSBC Institutional Trust Services (Singapore) Limited, through its special purpose vehicle in Malaysia, has entered into conditional sale and purchase agreements with third party buyers for the proposed divestments in Malaysia.

Flexhub, located in Senai, Johor, has a total net lettable area (NLA) of 63,175 sqm, while Padi, located in Pasir Gudang, Johor, has a net lettable area of 23,717 sqm. Both properties comprise single-storey industrial buildings with annexed office space, and have an average age of approximately 22 years.

The proposed sale price of RM125.1 million for Flexhub is 7.4% above the latest valuation of RM116.5 million as at Oct 1, while the proposed sale price of RM26.1 million for Padi is 16.0% above the latest valuation of RM22.5 million as at the same date.

The proposed divestments in Malaysia are expected to be completed in 1HFY2025, and are not expected to have a material impact on MLT’s net asset value and net property income for FY2025.

According to MLT, the proposed divestments are in line with its strategy to rejuvenate its portfolio through selective divestments. Capital released from the divestment will provide the trust with greater financial flexibility to pursue investment opportunities in high specification, modern logistics facilities with higher growth potential, it says.

Following the divestments, MLT’s portfolio will consist of 185 properties.

Units in MLT closed 1 cent or 0.75% down at $1.33 on Nov 10.

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