MLT

MLT: acquires Iljuk Gyeonggi Centre (IGC) in S Korea for KRW22b (S$25.5m) in its 3rd acq this yr. IGC, which consists of 2 blocks of 3-storey dry warehouses, is located in Geyonggi-do, within a warehouse and distribution cluster. It has a GFA of 23.4k sm and an initial NPI yield of 9.3%.The property is leased to Seol Logistics under a master head lease for 5 years with built-in rental escalation of 3.5% pa. Deutsche estimates a modest 0.4 - 0.7% accretion to FY11 and FY12 DPU rptvely…

Post acq, MLT will have 3 properties in S Korea (2.5% of gross revenue) and its portfolio will increase to 97 properties valued at $3.6b.
Deutsche keeps at Buy, with TP $1.06. Says valuations attractive at 7% FY11E yield.