Mainboard-listed Mapletree Logistics Trust said on Tuesday it was buying a warehouse facility in Japan for some S$16.2 million.
It signed a sale and purchase agreement to acquire Toki Logistics Centre from Hamakyorex, a third-party logistics company in Japan.
Under the deal, Hamakyorex will enter into a 10-year lease agreement with Mapletree Logistics.
The property is a two-storey warehouse facility strategically situated in Toki Plasma Research Park, which is some 40 kilometres from Nagoya.
Mapletree said the acquisition provided an attractive and accretive yield of 8.6 per cent.
It said this was comparatively higher than the implied property yield of the existing Japan portfolio, which is at about 5.5 per cent.
With the addition of this acquisition, Mapletree Logistics’ total portfolio will increase to 92 properties.
The acquisition is expected to be completed by the fourth quarter this year.
Mapletree Logistics said the acquisition would be funded by proceeds from its equity fund raising exercise.
In September, Mapletree Logistics launched an exercise comprising a combination of private placement and preferential offering of new units to raise some S$300 million.
Source : Channel NewsAsia – 19 Oct 2010