Mapletree Logistics Trust

Mapletree Logistics Trust: Mapletree Logistics Trust (MLT) will be spending $34m for an industrial property at 190A Pandan Loop and divesting 134 Joo Seng Road for $13.5m divestment of a light industrial building at 134 Joo Seng Road. The acquisition, priced at 6.5% yield, is for a 10,400 sm gfa four-storey purpose built food distribution centre which has a remaining lease term of 40 years. It is currently 79% leased to two quality tenants, Havi Logistics and Aryzta Singapore- global players in the food market. The leases have a weighted average lease term to expiry of 7.1 years. The property also has an under-utilised plot ratio, with the potential to double gfa by way of redevelopment. Separately, the divestment is for a four-storey building that was designed with building specifications that are no longer able to accommodate today’s modern warehousing requirements. With a gross floor area of approximately 7,100 sm, there is limited potential for enhancement or redevelopment as the property has reached its maximum allowable plot ratio of 2.5. The manager intends to distribute any disposal gain realised from the divestment, expected to be completed by 1Q15. Upon completion of both transactions, MLT's aggregate leverage ratio will be approximately 34.9%.