Mlt Divest Mapletree Logistics Warehouse Xian Rmb705 Mil
The manager of Mapletree Logistics Trust (MLT) has announced that its subsidiary, MapletreeLog Seastar (Xian), has entered into an agreement to sell its 100% equity interest in Mapletree Logistics Warehouse (Xian) to a third-party buyer. The sale is estimated to be RMB70.5 million ($13.1 million), slightly above the property’s valuation of RMB70 million as of March 31.
The property, known as Mapletree Xi’an Logistics Park, consists of a single-storey warehouse with four-storey office space and a two-storey warehouse. With a building age of almost 20 years, it has a net lettable area of approximately 22,876 square meters.
According to the manager, the divestment will provide MLT with more financial flexibility to pursue investment opportunities in high-specification, modern logistics facilities with higher growth potential. The transaction is expected to be completed by the third quarter of FY2024/FY2025 and is not expected to significantly impact MLT’s net asset value and net property income for the same period. Upon completion, MLT’s portfolio will consist of 186 properties.
Located in the bustling Marina Bay area, some of Singapore’s most well-known landmarks can be found, such as Gardens by the Bay and Marina Bay Sands. With the implementation of the URA Master Plan, the area is set to have even more leisure and recreational activities, including beautiful parks, scenic waterfront promenades, and potentially cultural venues. For residents of Marina Gardens Lane Condo, this is fantastic news as they will have a plethora of options for weekend outings, sports, and cultural experiences right at their doorstep. Furthermore, with the upcoming Great World City MRT Station Condo, getting around and exploring these exciting new developments will be a breeze.
Units in MLT closed at $1.32 on June 12, unchanged from the previous day’s closing price. This divestment is in line with the manager’s strategy to optimize its portfolio and focus on high-growth assets. MLT recently acquired the remaining 38% stake in a Hong Kong warehouse in Shatin for $104 million and is constantly on the lookout for value-accretive opportunities. Investors can look out for potential accumulation opportunities following the recent market pullback.