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Mapletree Logistics Trust (MLT) has agreed to purchase an 11-storey modern ramp-up warehouse in Hong Kong for HK$4.8 billion (S$834.8 million), revealed an SGX filing on Monday (28 August).
The vendor is Mapletree Overseas Holdings Ltd, a wholly-owned subsidiary of Mapletree Investments Pte Ltd.
Known as Mapletree Logistics Hub Tsing Yi, the property has a net lettable area of 148,065 sqm and is one of only 14 modern warehouses in the city. In fact, it is fully leased by 12 reputable tenants such as HKTV, DKSH, Ever Gain and Adidas.
It has high quality building specifications including a floor loading capacity of 17.5 kiloNewtons, a clear height of 5.5 metres for three-pallet storage, column-to-column spacing of 12 metres by 11 metres and large regular-shaped floor plates ranging from 36,000 sq ft to 147,000 sq ft.
Aside from being a recipient of the LEED Gold Award, the property is also designed to operate at a high level of throughput on a 24/7 basis. Moreover, it is located near the boundary with Mainland China, the Hong Kong International Airport and the Kwai Chung – Tsing Yi container terminals.
“Hong Kong has consistently been one of MLT’s best performing markets and continues to show great promise, due to sustained demand and limited supply. This acquisition will increase our net lettable area in Hong Kong by more than 70 percent to 3.8 million sq ft, and strengthen MLT’s position as a major player to meet the growing logistics demand in Hong Kong,” said Ng Kiat, CEO of Mapletree Logistics Trust Management Ltd.
“With its prime logistics location, modern specifications and 100 percent committed occupancy with quality tenants, this acquisition will enhance MLT’s income and tenant diversification. It is also expected to provide a net property income (NPI) yield of 5.7 percent,” she added.
The acquisition will be funded via a combination of equity and debt, but it requires the approval of MLT’s unitholders at an extraordinary general meeting that will be held on 13 September 2017.
This article was edited by Denise Djong.
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