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With a total gross floor area of almost 150,000 sq m, the properties come with high quality building specifications meeting the requirements of third-party logistics firms (3PLs) and e-commerce tenants.
Mapletree Logistics Trust (MLT) has agreed to acquire a portfolio of five freehold logistics properties in South Korea for 280 billion won (S$334.8 million).
The trust’s manager said the acquisitions are in line with its strategy “to rejuvenate MLT’s portfolio through the addition of modern logistics facilities from acquisitions and redevelopment”.
With a total gross floor area of almost 150,000 sq m, the properties come with high quality building specifications meeting the requirements of third-party logistics firms (3PLs) and e-commerce tenants.
Given their modern specifications and favourable locations, the properties are well positioned to attract tenants from high-value industries as well as the e-commerce sector.
The properties are located within the Yongin-Icheon area, which is a prime logistics cluster in the south-east of the Seoul Metropolitan Area, and have a weighted average age (by net lettable area) of 4.2 years.
They are fully leased to four established local 3PLs with a weighted average lease expiry (by net lettable area) of around 1.7 years.
Based on the purchase price, the properties are expected to generate an initial net property income yield of about 4.5%.
The manager expects the acquisitions, which will be funded by debt, to be accretive to the distribution per unit of MLT.
“This is an attractive strategic opportunity for MLT to acquire a portfolio of high specifications warehouses that will significantly scale up our competitive positioning,” said Ng Kiat, Chief Executive Officer of MLT’s manage.
“The acquisitions will increase our gross floor area in South Korea by 40%, enabling us to better cater to the current and future needs of our customers and capture growth opportunities in the logistics market.”
Post acquisitions, MLT’s aggregate leverage ratio will hover at about 38.9%, while its portfolio will expand to 161 properties with assets under management totalling S$10.5 billion.
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