The manager of Mapletree Logistics Trust (MLT) says the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, has entered into a purchase agreement with an unrelated third party buyer for the divestment of its property at 1 Genting Lane.
Under the agreement, the property has a sale consideration of $12.3 million, which is 35.2% above its valuation of $9.1 million as at Oct 1.
The property is a 36-year old industrial building, which comprises a seven-storey warehouse with an office and showroom. The property has a net lettable area of approximately 6,050 sqm on a land site of around 3,372 sqm.
According to the manager, the proposed divestment is in line with its effort to “rejuvenate the REIT’s portfolio through selective divestments of assets that are no longer aligned with its strategy”.
Net proceeds from the divestment are expected to provide the MLT with greater financial flexibility to pursue investment opportunities, such as modern logistics facilities with higher growth potential, adds the manager.
The proposed divestment is set to be completed by 1QFY2025/26 and is not expected to have a material impact on MLT’s net asset value and net property income for FY2025/26.
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Upon completion, MLT’s portfolio will consist of 179 properties.
Units in MLT closed 1 cent lower, or down 0.79%, at $1.26 on Dec 16.
