Singapore listed Mapletree Logistics Trust Management Ltd (MLT) Monday announced that it had acquired a warehouse each in Vietnam and South Korea for a total of S$42.2 million.
The company, in its regulatory filing, said it had acquired a warehouse in Vietnam – Mapletree Logistics Park Bac Ninh Phase – through an MoU its sponsor , Mapletree Investments Pte Ltd, for VND339.4 billion (S$20.8 million).
The transactions will be fully funded by debt. Upon completion, MLT’s aggregate leverage ratio will be approximately 34.9 per cent while total portfolio will increase to 119 properties with a book value of approximately S$4.67 billion .
Completed in March 2012, MLPBN1 comprises three blocks of single-storey warehouses with mezzanine offices. It is 100 per cent occupied by a strong tenant base comprising mostly international logistics companies such as DHL, Sagawa Express, Yusen Logistics and Schenker Logistics. As at 30 April 2015, the leases have a weighted average lease term to expiry of 2.1 years.
Justifying the deal, the company said: “MLPBN1 is located within Vietnam-Singapore Industrial Park Bac Ninh, approximately 20 km from Hanoi city centre. The property is served by a comprehensive highway system linking it to Hanoi, Noi Bai International Airport, Hai Phong Seaport as well as the Vietnam-China border. Given its proximity to the city centre and good connectivity to major transport infrastructure, MLPBN1 is ideal as a distribution centre.”
It has also acquired another such asset in South Korea – Dakonet Logistics Centre – through a sale and purchase agreement with Dakonet Co Ltd for KRW17.5 billion (S$21.4 million).
Explaining the rationale behind the deal, MLT said: “The property is located in Gyeonggi province, about 43 kilometres from Seoul. Gyeonggi province is widely recognised as one of South Korea’s largest logistics cluster where about 70 per cent of the country’s warehouses and distribution centres are located. It is popular with logistics companies due to its proximity to Seoul and good accessibility to various parts of the country. The property is well served by the Jungbu and Youngdong expressways and National Road 42. It is also located close to the West Icheon and Deokpyung Interchanges, which makes it ideal for domestic distribution.”