Singapore: Mapletree Logistics Trust takes over HK realty asset in $78m deal

Hong Kong. Image: Pixabay

Mapletree Logistics Trust (MLT) has fully acquired a strata-titled logistics property, Shatin No. 3, in Hong Kong by picking up 38 per cent stake that it does not own for HK$610 million ($77.9 million).

The logistics asset has been in MLT’s portfolio since 2006 and maintains a record of strong operating performance. Shatin is the second largest warehouse market in Hong Kong with strong connectivity to key transportation infrastructure.

CBRE valued the 38 per cent stake at HK$615 million ($78.6 million) as at 31 December 2017, based on the discounted cash flow method and the income capitalisation method. The total cost of the acquisition is estimated at S$115.1 million ($86.4 million) including fees and other payables.

Shatin No. 3 comprises an 18-storeyed warehouse with cargo lift access and a total net lettable area of 39,125 sqm on a site area of 3,400 sq m.

In a statement, Ng Kiat, CEO of MLTM, says, “Following our recent acquisition of Mapletree Logistics Hub Tsing Yi, this acquisition will further expand MLT’s presence in Hong Kong, an attractive market that enjoys healthy organic growth due to supply constraints.”

MLTM intends to reposition the building to generate higher yield and improve the capital value for investors in the REIT.

MLTM intends to finance the acquisition via bank borrowings and internal funds and expects the deal to close this month. The acquisition will also see MLT post an aggregate leverage ratio of 39 per cent, with a total portfolio comprising 125 properties with a book value of S$6.3 billion ($4.73 billion).

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Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.