MapleTree – CNA

MapletreeLog acquires 4 Singapore properties for S$36.8m
By Asha Popatlal, Channel NewsAsia | Posted: 26 August 2007 1926 hrs

SINGAPORE: Mapletree Logistics Trust Management Ltd., also known as MapletreeLog, has signed a ‘put and call option’ agreement to acquire four warehouse properties for S$36.8 million.

The properties in Pioneer Road, Neythal Road and Tuas will be leased by two subsidiaries of Union Steel Holdings Limited, a public listed company.

Lease tenure for all the properties is six years, with an option to extend for another six years.

Rents and capital values of industrial property in Singapore have been on the rise, according to CB Richard Ellis’ report of figures for the first quarter of this year.

The average monthly rent for warehouses increased for the first time since 2003.

The acquisition, expected to be funded wholly by debt, is likely to be completed by the fourth quarter of this year.

However, in a statement, MapletreeLog says this does not preclude it from exploring alternative means of funding should the need arise.