The manager of Mapletree Logistics Trust M44U (MLT) has announced that the trust’s wholly-owned subsidiary MapletreeLog Seastar (Xian) has entered into an equity purchase agreement with an unrelated third party buyer to divest 100% of its equity interest in Mapletree Logistics Warehouse (Xian), which owns Mapletree Xi’an Logistics Park.
The sale consideration is estimated to be RMB70.5 million ($13.1 million), 0.7% above the property’s valuation of RMB70 million as at March 31.
Comprising a single-storey warehouse with a four-storey office and a two-storey warehouse, Mapletree Xi’an Logistics Park has a building age of almost 20 years and a net lettable area of approximately 22,876 sq m.
Capital released from the divestment will provide MLT with greater financial flexibility to pursue investment opportunities in high specification, modern logistics facilities with higher growth potential, the manager said in a filing.
The proposed divestment is expected to be completed by 3QFY2024/FY2025. It is not expected to have a material impact on MLT’s net asset value and net property income for FY2024/FY2025. Following the divestment, MLT’s portfolio will consist of 186 properties.
Units in MLT closed at an unchanged $1.32 on June 12.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
