Mapletree Logistics Trust plans to buy two industrial land parcels in Selangor for RM65.6 million ($21 million), with an eye to combine them with two other adjacent properties it already owns.
Specifically, MLT aims to build the first modern ramp-up warehouse in Subang Jaya, where the land parcels are site. “This is in line with our strategy to optimise MLT’s portfolio and future-proof our assets through asset rejuvenation,” says Ng Kiat, CEO of MLT’s manager.
The two land parcels cover 257,000 square feet. They are 20 minutes’ drive from MLT’s other nearby assets – Mapletree Shah Alam Logistics Park and Mapletree Logistics Hub - Shah Alam.
Subject to regulatory approvals, the total land parcel will reach 492,000 sqft, with the potential to build a property that can yield up to 1.4 million sq ft in gross floor area.
MLT estimates the development to cost some RM500 million and upon completion, estimated to be 2027, make it the first mega modern logistics facility in Subang Jaya.
According to MLT, the land parcels have been accorded a value of RM67.9 million by First Pacific Valuers Property Consultants as at Jan 24.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
MLT plans to fund the acquisition using debt and by doing so, will likely increase its gearing to 39.2% on a pro forma basis
MLT closed Feb 15 at $1.75, up 1.16% for the day but down 6.91% year to date.
