Bookmark & Share
Mapletree Logistics Trust (MLT) has agreed to acquire the remaining 38 percent strata share value of Shatin No. 3 in Hong Kong for HK$610 million ($S103.7 million).
Nestled on a 3,400 sq m site, Shatin No. 3 is a strata-titled building comprising an 18-storey warehouse with cargo lift access.
In an SGX filing, MLT’s manager revealed that the 38 percent interest in the property “is being acquired on an ‘as-is-where-is’ basis with vacant possession except for one floor which will be leased back to the vendor on a short tenure”.
It noted that the acquisition will be financed via internal funds and bank borrowings.
“This acquisition presents a rare opportunity for us to gain full ownership of Shatin No. 3, a strata-titled logistics property in Hong Kong. The property has been in MLT’s portfolio since 2006 with a consistent track record of strong operating performance,” said Ng Kiat, the chief executive officer of the manager.
“We believe that there is potential for the whole building to be repositioned through asset enhancements to attract higher value tenants. Following on 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.”
Meanwhile, OCBC expects the move to enable MLT to better manage its property portfolio while making it easier to optimise returns for unitholders, reported Singapore Business Review.
This article was edited by Keshia Faculin.
Related Articles:
Two Singapore-listed REITs respond to new US tax rules