MapletreeLog acquires 3 properties in Japan for $200m

Mapletree Logistics Trust has been agreed to acquire the following properties in Japan Kabushiki Kaisha A-Max to acquire the following properties in Japan:

* Iwatsuki Logistics Centre: a distribution centre with ancillary office located in Iwatsuki, Saitama Prefecture with gross floor area (GFA) of 30,000 sqm.
* Iruma Logistics Centre: a distribution centre with ancillary office with GFA of 26,000 sqm, located in the city of Iruma, Saitama Prefecture; and
* Noda Logistics Centre: a distribution centre with ancillary office with GFA of 36,000 sqm, located in the city of Noda, Saitama Prefecture.

The properties will be acquired for a total purchase consideration of JPY 13 billion ($200 million). The vendor, A-Max, is a logistics facilities development and management company.

Richard Lai, Chief Executive Officer of MLTM, says, “We are very pleased that these Properties will be added into MapletreeLog’s diversified portfolio of assets. The stable income stream from these properties will provide further certainty and stability in cashflow for MapletreeLog, adding to the Trust’s stable core of long-term leases which generate stable returns for our unitholders.”

The acquisition will be the sixth announced since December last year bringing the total acquisitions announced and/or completed to date to about $430 million. With the completion of all these acquisitions, MapletreeLog will have a portfolio value of $3.3 billion.

MapletreeLog says it has sufficient financial flexibility and capacity to fund the Acquisition which is expected to be completed by end 3Q 2010. The purchase price and other acquisition costs of the properties will be fully funded by debt, which will bring MapletreeLog’s gearing level to 43.6%, after taking into account all acquisitions announced to date.

Source : The Edge – 28 Jul 2010

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