Mapletree Logistics

Mapletree Logistics: entered into two sale and purchase agreements with sponsor Mapletree Investments to acquire: 1) Mapletree Yangshan Bonded Logistics Park in Shanghai Pilot Free Tree Zone for approx. $41.1m, about 4% below average valuation by independent valuers Savills and CBRE 2) Mapletree Zhengzhou Logistics Park in Zhengzhou for approx $42.8m, about 2% below average valuation by independent valuers Savills and DTZ. The first was a pleasant surprise while the second was within expectations. The Shanghai property is a prized possession with gross floor area of ~46k sqm on ~99k sqm land, fully occupied as of September 2014. It is a grade-A logistics facility comprising two blocks of single-storey warehouses with good building specifications and mezzanine offices, and strategically located near Yangshan Deepwater Port. It is expected to be DPU-accretive with estimated initial NPI yield of 7.5%. The Zhengzhou property has similar facilities as the Shanghai property, comes with gross floor area of ~79k sqm on 131k sqm land, and is 99.2% occupied as of Jun 2014. It is also expected to be DPU-accretive with estimated initial NPI yield of 8%. Post-acquisitions, MLT’s total portfolio will comprise of 115 properties with book value ~$4.39b and aggregate leverage ratio will increase to approx. 35.2%.Together, these two properties should add >1% to DPU.