Jul 6, 2015

Mapletree Logistics Trust acquisition announcement

Mapletree Logistics Trust announced the proposed acquisition of Coles Chilled Distribution Centre (Coles CDC), a premium freehold cold store warehouse located in Eastern Creek, Sydney, New South Wales, Australia, for a purchase consideration of A$253m (approximately S$261.5m).

Coles CDC is 100% leased to blue-chip tenant with a long lease term of 19 years and built-in rental increase. Currently the property has an NLA of 55,395 sqm with a potential 7,000 sqm for future expansion. Initial yield of 5.6%, and transaction price is at A$4,567 psm. According to the Manager, acquisition will be funded by debt and DPU is estimated to increase by 1%. Gearing is estimated to increase to 39% post deal. This will bring YTD acquisitions to close to S$300m ( post deals done in Korea and Vietnam from Sponsor), where contributions from acquisitions will help compensate for the loss of earnings due to ongoing headwinds seen in the Singapore portfolio ( vacancy risks due to conversions from multi-tenanted to single tenanted properties).

1 comment:

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