MLT acquires seven logistics facilities in Japan

Mapletree Logistics Trust (MLT) said it has acquired seven logistics facilities in Japan for JPY 17.5 billion or about S$292 million.

In a statement, the Trust said the seven properties, with a total gross floor area of 124,300 square metres are located within the key logistics hubs across Japan in the Hokkaido, Greater Tokyo, Nagoya and Osaka regions.

The acquisition is expected to generate a stabilised weighted average net property income yield of about 6.2 per cent.

Mr Richard Lai, CEO of Mapletree Logistics Trust Management said, “As some of the assets have yet to reach their maximum permissible plot ratio, we are excited with the opportunity for organic growth which can potentially generate an additional 30,000 sqm of gross floor area, as and when required by customers. Furthermore, we have added new customers with strong financial standing.”

After this acquisition, gross revenue contribution from the Japan portfolio will account for around 29 per cent of MLT’s overall gross revenue, up from 24 per cent currently.

MLT added that demand for large, high quality logistics facilities in Japan has been on the rise after the earthquake last year as firms seek to improve supply chain management and crisis management capabilities.

The Trust said new supply of logistics facilities has been limited, especially in Greater Tokyo where 70 per cent of the acquisition portfolio is located.

The acquisition will be funded through a combination of debt and proceeds raised from the issuance of Singapore dollar denominated perpetual securities.

Last week, MLT announced that it will issue S$350 million of perpetual securities on March 19 at a distribution rate of 5.375 per cent.

The acquisition is expected to be completed by April 2012.

Source : Channel NewsAsia – 12 Mar 2012

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