Mapletree To Manage JTC’s Industrial Property Trust

Source : The Straits Times, Feb 2, 2008

INDUSTRIAL landlord JTC Corporation has appointed Mapletree Investments to establish and manage a real estate investment trust (Reit) that it plans to list around the middle of the year.

The Reit will acquire some of JTC’s high-rise, ready-built properties , including flatted factories and multi-tenanted business park buildings, said JTC and Mapletree in a joint statement yesterday.

Singapore’s largest industrial landlord first announced its divestment plan in late 2005. It said the move would create a more vibrant market and enable it to focus on strategic industrial developments such as the Jurong Island chemicals hub.

JTC announced last July that it had shortlisted seven firms to manage the Reit.

It also said that it will sell $1.4 billion to $1.6 billion of assets - about 10 per cent of its $10.6 billion portfolio and that part of it will go into a Reit.

JTC chief executive Ow Foong Pheng said yesterday: ‘We received quality submissions from a wide range of international and local players.’

All proposals were evaluated on individual merit against an objective set of criteria, and Mapletree was chosen after a rigorous process, she said.

Mapletree, a Temasek Holdings subsidiary, is the sponsor for Singapore-listed Mapletree Logistics Trust.

The firm has an asset base of about $5.3 billion and assets under management of $2.5 billion across Asia.

Mapletree chief executive Hiew Yoon Khong said: ‘We find the asset portfolio very attractive. It is well diversified in terms of tenancy, location and asset type.’

The properties are also strategically located close to or have good access to the city centre, housing estates, key industrial belts and transport nodes, he said.

They enjoy high occupancy rates, a good quality tenant base and long-staying tenants.

JTC said it will work closely with Mapletree to effect a smooth transition upon the transfer of the selected properties .

The timing for the proposed Reit is around mid-2008 and subject to market conditions, said the joint statement.

The current outlook for initial public offerings is bearish as volatility rocks the stock market.

Singapore’s industrial property market has done well, with prices up 22.7 per cent last year, according to Urban Redevelopment Authority data.

Rents of industrial properties chalked up a stronger 32 per cent growth last year, as the sector had benefited from spillover office sector demand.