Source : The Straits Times, Monday, September 24, 2007
MAPLETREE Logistics Trust Management (MapletreeLog) has bought a warehouse in Singapore for $15.2 million, marking the latest in a rapid run of acquisitions over the last few months.
Yesterday, it announced that it had bought the warehouse in Tuas from Pioneer Districentre, which will lease back the property for seven years - with an option to extend it for a further seven years.
MapletreeLog chief executive Chua Tiow Chye said that this acquisition adds to the trust’s stable core of Singapore properties which will generate long-term and stable returns for unitholders.
‘Given the tight supply situation for high quality logistics real estate in good locations, rentals and capital values are expected to remain firm,’ Mr Chua added.
Just last week, MapletreeLog said that it is investing $92 million in a distribution centre in the Kanto region of Japan, a key logistics area.
The tenant will have a lease tenure of 20 years, which the trust sees as complementing the shorter-term leases it has in its portfolio in higher-growth markets such as China, Hong Kong and Malaysia.
Earlier this month, MapletreeLog completed the purchase of two properties in Selangor, Malaysia for just under RM30 million (S$13 million).
Prior to yesterday’s purchase, its most recent buy in the Singapore market came last month. MapletreeLog then bought four warehouses for $36.8 million from mainboard-listed Union Steel Holdings, which will lease them back for six years, with an option to extend for another six years.
All four properties are located in the Tuas area.
Last Friday, the Reit’s units closed unchanged at $1.17. While the share price was as high as $1.46 in May, it has since lagged behind the broader market.
It is now roughly at the same level as at the start of the year, while the Straits Times Index is still 18 per cent up.
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